Correlation Between Jones Soda and Eastside Distilling
Can any of the company-specific risk be diversified away by investing in both Jones Soda and Eastside Distilling 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 Eastside Distilling 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 Eastside Distilling, you can compare the effects of market volatilities on Jones Soda and Eastside Distilling 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 Eastside Distilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Soda and Eastside Distilling.
Diversification Opportunities for Jones Soda and Eastside Distilling
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jones and Eastside is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jones Soda Co and Eastside Distilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastside Distilling 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 Eastside Distilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastside Distilling has no effect on the direction of Jones Soda i.e., Jones Soda and Eastside Distilling go up and down completely randomly.
Pair Corralation between Jones Soda and Eastside Distilling
If you would invest 98.00 in Eastside Distilling on January 26, 2024 and sell it today you would earn a total of 7.00 from holding Eastside Distilling or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Jones Soda Co vs. Eastside Distilling
Performance |
| Timeline |
| Jones Soda |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eastside Distilling |
Jones Soda and Eastside Distilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jones Soda and Eastside Distilling
The main advantage of trading using opposite Jones Soda and Eastside Distilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jones Soda position performs unexpectedly, Eastside Distilling 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 Eastside Distilling will offset losses from the drop in Eastside Distilling's long position.| Jones Soda vs. Zevia Pbc | Jones Soda vs. Hill Street Beverage | Jones Soda vs. Primo Water Corp | Jones Soda vs. Flow Beverage Corp |
| Eastside Distilling vs. Andrew Peller Limited | Eastside Distilling vs. Naked Wines plc | Eastside Distilling vs. Willamette Valley Vineyards | Eastside Distilling vs. The Tinley Beverage |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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