Correlation Between Eq Energy and Jones Soda

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Can any of the company-specific risk be diversified away by investing in both Eq Energy 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 Eq Energy and Jones Soda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eq Energy Drink and Jones Soda Co, you can compare the effects of market volatilities on Eq Energy 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 Eq Energy with a short position of Jones Soda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eq Energy and Jones Soda.

Diversification Opportunities for Eq Energy and Jones Soda

EQLBJonesDiversified AwayEQLBJonesDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between EQLB and Jones is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eq Energy Drink and Jones Soda Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Soda and Eq Energy 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 Eq Energy Drink 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 Eq Energy i.e., Eq Energy and Jones Soda go up and down completely randomly.

Pair Corralation between Eq Energy and Jones Soda

If you would invest  0.08  in Eq Energy Drink on November 26, 2024 and sell it today you would lose (0.01) from holding Eq Energy Drink or give up 12.5% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Eq Energy Drink  vs.  Jones Soda Co

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -60-40-200204060
JavaScript chart by amCharts 3.21.15EQLB JSDA
       Timeline  
Eq Energy Drink 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Eq Energy Drink are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal essential indicators, Eq Energy sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.00040.00060.00080.0010.00120.00140.0016
Jones Soda 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Jones Soda Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Jones Soda is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Eq Energy and Jones Soda Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-83.27-62.36-41.46-20.560.3521.5343.4265.3187.2 0.00010.00020.00030.00040.0005
JavaScript chart by amCharts 3.21.15EQLB JSDA
       Returns  

Pair Trading with Eq Energy and Jones Soda

The main advantage of trading using opposite Eq Energy and Jones Soda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eq Energy 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.
The idea behind Eq Energy Drink and Jones Soda Co 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.
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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