Correlation Between Harmony Gold and Jones Soda

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

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

Diversification Opportunities for Harmony Gold and Jones Soda

-0.57

Correlation Coefficient

Harmony Gold  Jones Soda

Excellent diversification

The 3 months correlation between Harmony and Jones is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Jones Soda Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Soda and Harmony Gold 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 Harmony Gold Mining 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 Harmony Gold i.e., Harmony Gold and Jones Soda go up and down completely randomly.

Pair Corralation between Harmony Gold and Jones Soda

Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the Jones Soda. But the pink sheet apears to be less risky and, when comparing its historical volatility, Harmony Gold Mining is 3.0 times less risky than Jones Soda. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Jones Soda Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  18.00  in Jones Soda Co on August 26, 2025 and sell it today you would lose (1.00) from holding Jones Soda Co or give up 5.56% of portfolio value over 90 days.

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

Harmony Gold Mining  vs.  Jones Soda Co

Harmony Gold Mining

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Harmony Gold Mining are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental indicators, Harmony Gold may actually be approaching a critical reversion point that can send shares even higher in December 2025.

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

Pair Trading with Harmony Gold and Jones Soda

The main advantage of trading using opposite Harmony Gold and Jones Soda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold 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 Harmony Gold Mining 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.