Correlation Between Elamex SA and Jones Soda

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

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

Diversification Opportunities for Elamex SA and Jones Soda

-0.12

Correlation Coefficient

Elamex SA  Jones Soda

Good diversification

The 3 months correlation between Elamex and Jones is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Elamex SA de and Jones Soda Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Soda and Elamex SA 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 Elamex SA de 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 Elamex SA i.e., Elamex SA and Jones Soda go up and down completely randomly.

Pair Corralation between Elamex SA and Jones Soda

Assuming the 90 days horizon Elamex SA de is expected to generate 0.55 times more return on investment than Jones Soda. However, Elamex SA de is 1.82 times less risky than Jones Soda. It trades about 0.13 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  215.00  in Elamex SA de on July 28, 2025 and sell it today you would earn a total of  40.00  from holding Elamex SA de or generate 18.6% return on investment over 90 days.

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

Elamex SA de  vs.  Jones Soda Co

Elamex SA de

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Elamex SA de are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Elamex SA reported solid returns over the last few months and may actually be approaching a breakup point.

Jones Soda

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jones Soda Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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 Elamex SA and Jones Soda

The main advantage of trading using opposite Elamex SA and Jones Soda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elamex SA 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 Elamex SA de 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..