Correlation Between Jones Soda and DNA Brands

Can any of the company-specific risk be diversified away by investing in both Jones Soda and DNA Brands 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 DNA Brands 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 DNA Brands, you can compare the effects of market volatilities on Jones Soda and DNA Brands 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 DNA Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Soda and DNA Brands.

Diversification Opportunities for Jones Soda and DNA Brands

0.0

Correlation Coefficient

Jones Soda  DNA Brands

Pay attention - limited upside

The 3 months correlation between Jones and DNA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jones Soda Co and DNA Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNA Brands 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 DNA Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNA Brands has no effect on the direction of Jones Soda i.e., Jones Soda and DNA Brands go up and down completely randomly.

Pair Corralation between Jones Soda and DNA Brands

If you would invest  0.01  in DNA Brands on May 11, 2025 and sell it today you would earn a total of  0.00  from holding DNA Brands or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jones Soda Co  vs.  DNA Brands

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 latest stock price disturbance, may contribute to short-term losses for the investors.

DNA Brands

Risk-Adjusted Performance

Weakest

Over the last 90 days DNA Brands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, DNA Brands is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jones Soda and DNA Brands

The main advantage of trading using opposite Jones Soda and DNA Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jones Soda position performs unexpectedly, DNA Brands 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 DNA Brands will offset losses from the drop in DNA Brands' long position.

The idea behind Jones Soda Co and DNA Brands 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.