Correlation Between Barfresh Food and Jones Soda
Can any of the company-specific risk be diversified away by investing in both Barfresh Food and Jones Soda 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 Barfresh Food and Jones Soda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barfresh Food Group and Jones Soda Co, you can compare the effects of market volatilities on Barfresh Food and Jones Soda 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 Barfresh Food with a short position of Jones Soda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barfresh Food and Jones Soda.
Diversification Opportunities for Barfresh Food and Jones Soda
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barfresh and Jones is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Barfresh Food Group and Jones Soda Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Soda and Barfresh Food 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 Barfresh Food Group are associated (or correlated) with Jones Soda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jones Soda has no effect on the direction of Barfresh Food i.e., Barfresh Food and Jones Soda go up and down completely randomly.
Pair Corralation between Barfresh Food and Jones Soda
Given the investment horizon of 90 days Barfresh Food Group is expected to generate 1.92 times more return on investment than Jones Soda. However, Barfresh Food is 1.92 times more volatile than Jones Soda Co. It trades about 0.06 of its potential returns per unit of risk. Jones Soda Co is currently generating about -0.02 per unit of risk. If you would invest 130.00 in Barfresh Food Group on August 31, 2024 and sell it today you would earn a total of 164.00 from holding Barfresh Food Group or generate 126.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.31% |
| Values | Daily Returns |
Barfresh Food Group vs. Jones Soda Co
Performance |
| Timeline |
| Barfresh Food Group |
| Jones Soda |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barfresh Food and Jones Soda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barfresh Food and Jones Soda
The main advantage of trading using opposite Barfresh Food and Jones Soda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barfresh Food position performs unexpectedly, Jones Soda 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 Jones Soda will offset losses from the drop in Jones Soda's long position.| Barfresh Food vs. Flow Beverage Corp | Barfresh Food vs. Fbec Worldwide | Barfresh Food vs. Hill Street Beverage | Barfresh Food vs. Eq Energy Drink |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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