Correlation Between Atlantic Sapphire and Jones Soda

Can any of the company-specific risk be diversified away by investing in both Atlantic Sapphire 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 Atlantic Sapphire and Jones Soda into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atlantic Sapphire ASA and Jones Soda Co, you can compare the effects of market volatilities on Atlantic Sapphire 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 Atlantic Sapphire with a short position of Jones Soda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Sapphire and Jones Soda.

Diversification Opportunities for Atlantic Sapphire and Jones Soda

0.54

Correlation Coefficient

Atlantic Sapphire  Jones Soda

Very weak diversification

The 3 months correlation between Atlantic and Jones is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Sapphire ASA and Jones Soda Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Soda and Atlantic Sapphire 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 Atlantic Sapphire ASA 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 Atlantic Sapphire i.e., Atlantic Sapphire and Jones Soda go up and down completely randomly.

Pair Corralation between Atlantic Sapphire and Jones Soda

Assuming the 90 days horizon Atlantic Sapphire ASA is expected to under-perform the Jones Soda. But the otc stock apears to be less risky and, when comparing its historical volatility, Atlantic Sapphire ASA is 1.53 times less risky than Jones Soda. The otc stock trades about -0.04 of its potential returns per unit of risk. The Jones Soda Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  18.00  in Jones Soda Co on August 24, 2025 and sell it today you would lose (1.00) from holding Jones Soda Co or give up 5.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Atlantic Sapphire ASA  vs.  Jones Soda Co

Atlantic Sapphire ASA

Risk-Adjusted Performance

Weakest

Over the last 90 days Atlantic Sapphire ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Jones Soda

Risk-Adjusted Performance

Weakest

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.

Pair Trading with Atlantic Sapphire and Jones Soda

The main advantage of trading using opposite Atlantic Sapphire and Jones Soda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Sapphire 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 Atlantic Sapphire ASA 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.