Correlation Between Jones Soda and China Tontine

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Jones Soda and China Tontine at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jones Soda and China Tontine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jones Soda Co and China Tontine Wines, you can compare the effects of market volatilities on Jones Soda and China Tontine and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jones Soda with a short position of China Tontine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Soda and China Tontine.

Diversification Opportunities for Jones Soda and China Tontine

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Jones and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jones Soda Co and China Tontine Wines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Tontine Wines and Jones Soda is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jones Soda Co are associated (or correlated) with China Tontine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Tontine Wines has no effect on the direction of Jones Soda i.e., Jones Soda and China Tontine go up and down completely randomly.

Pair Corralation between Jones Soda and China Tontine

If you would invest  18.00  in Jones Soda Co on September 12, 2025 and sell it today you would earn a total of  18.00  from holding Jones Soda Co or generate 100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Jones Soda Co  vs.  China Tontine Wines

 Performance 
       Timeline  
Jones Soda 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Jones Soda Co are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental indicators, Jones Soda sustained solid returns over the last few months and may actually be approaching a breakup point.
China Tontine Wines 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days China Tontine Wines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, China Tontine is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Jones Soda and China Tontine Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jones Soda and China Tontine

The main advantage of trading using opposite Jones Soda and China Tontine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jones Soda position performs unexpectedly, China Tontine can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in China Tontine will offset losses from the drop in China Tontine's long position.
The idea behind Jones Soda Co and China Tontine Wines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Other Complementary Tools

Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios