Correlation Between Jones Soda and InTest

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

Diversification Opportunities for Jones Soda and InTest

-0.44

Correlation Coefficient

Jones Soda  InTest

Very good diversification

The 3 months correlation between Jones and InTest is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jones Soda Co and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest 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 InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Jones Soda i.e., Jones Soda and InTest go up and down completely randomly.

Pair Corralation between Jones Soda and InTest

Given the investment horizon of 90 days Jones Soda Co is expected to generate 2.33 times more return on investment than InTest. However, Jones Soda is 2.33 times more volatile than inTest. It trades about 0.14 of its potential returns per unit of risk. inTest is currently generating about 0.0 per unit of risk. If you would invest  17.00  in Jones Soda Co on October 2, 2025 and sell it today you would earn a total of  12.00  from holding Jones Soda Co or generate 70.59% return on investment over 90 days.

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

Jones Soda Co  vs.  inTest

Jones Soda

Risk-Adjusted Performance

Good

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.

inTest

Risk-Adjusted Performance

Weakest

Over the last 90 days inTest has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, InTest is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Jones Soda and InTest

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

The idea behind Jones Soda Co and inTest 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.