Correlation Between Jones Soda and China Tontine
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 Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jones Soda Co vs. China Tontine Wines
Performance |
| Timeline |
| Jones Soda |
| China Tontine Wines |
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.| Jones Soda vs. Putnam Focused Large | Jones Soda vs. Alcoa Corp | Jones Soda vs. McDonalds | Jones Soda vs. OGE Energy |
| China Tontine vs. Big Rock Brewery | China Tontine vs. Jones Soda Co | China Tontine vs. DAVIDsTEA | China Tontine vs. Colabor Group |
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.
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