Correlation Between Jones Soda and Barfresh Food

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

Diversification Opportunities for Jones Soda and Barfresh Food

0.0

Correlation Coefficient

Jones Soda  Barfresh Food

Pay attention - limited upside

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

Pair Corralation between Jones Soda and Barfresh Food

If you would invest  242.00  in Barfresh Food Group on December 26, 2024 and sell it today you would earn a total of  118.00  from holding Barfresh Food Group or generate 48.76% 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.  Barfresh Food Group

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.

Barfresh Food Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Barfresh Food Group are ranked lower than 10 (%) 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.

Pair Trading with Jones Soda and Barfresh Food

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

The idea behind Jones Soda Co and Barfresh Food Group 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.