Correlation Between ScanSource and Jones Soda

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

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

Diversification Opportunities for ScanSource and Jones Soda

-0.11

Correlation Coefficient

ScanSource  Jones Soda

Good diversification

The 3 months correlation between ScanSource and Jones is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and Jones Soda Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Soda and ScanSource 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 ScanSource 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 ScanSource i.e., ScanSource and Jones Soda go up and down completely randomly.

Pair Corralation between ScanSource and Jones Soda

Given the investment horizon of 90 days ScanSource is expected to under-perform the Jones Soda. But the stock apears to be less risky and, when comparing its historical volatility, ScanSource is 4.88 times less risky than Jones Soda. The stock trades about -0.09 of its potential returns per unit of risk. The Jones Soda Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Jones Soda Co on September 29, 2025 and sell it today you would earn a total of  11.00  from holding Jones Soda Co or generate 64.71% return on investment over 90 days.

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

ScanSource  vs.  Jones Soda Co

ScanSource

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanSource has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Jones Soda

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Jones Soda Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile fundamental indicators, Jones Soda sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ScanSource and Jones Soda

The main advantage of trading using opposite ScanSource and Jones Soda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource 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 ScanSource 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..