Correlation Between Barfresh Food and Jones Soda

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

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

Diversification Opportunities for Barfresh Food and Jones Soda

0.0

Correlation Coefficient

Barfresh Food  Jones Soda

Pay attention - limited upside

The 3 months correlation between Barfresh and Jones is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barfresh Food Group and Jones Soda Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Soda and Barfresh Food 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 Barfresh Food Group 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 Barfresh Food i.e., Barfresh Food and Jones Soda go up and down completely randomly.

Pair Corralation between Barfresh Food and Jones Soda

If you would invest  274.00  in Barfresh Food Group on December 28, 2024 and sell it today you would earn a total of  32.00  from holding Barfresh Food Group or generate 11.68% return on investment over 90 days.

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

Barfresh Food Group  vs.  Jones Soda Co

Barfresh Food Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Barfresh Food Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile technical and fundamental indicators, Barfresh Food demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Jones Soda

Risk-Adjusted Performance

Very Weak

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 Barfresh Food and Jones Soda

The main advantage of trading using opposite Barfresh Food and Jones Soda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barfresh Food 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 Barfresh Food Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.