Correlation Between Jones Soda and ScanSource

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

Diversification Opportunities for Jones Soda and ScanSource

-0.07

Correlation Coefficient

Jones Soda  ScanSource

Good diversification

The 3 months correlation between Jones and ScanSource is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jones Soda Co and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of Jones Soda i.e., Jones Soda and ScanSource go up and down completely randomly.

Pair Corralation between Jones Soda and ScanSource

Given the investment horizon of 90 days Jones Soda Co is expected to generate 4.6 times more return on investment than ScanSource. However, Jones Soda is 4.6 times more volatile than ScanSource. It trades about 0.11 of its potential returns per unit of risk. ScanSource is currently generating about -0.04 per unit of risk. If you would invest  18.00  in Jones Soda Co on September 20, 2025 and sell it today you would earn a total of  8.00  from holding Jones Soda Co or generate 44.44% return on investment over 90 days.

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

Jones Soda Co  vs.  ScanSource

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 8 (%) 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.

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 rather sound basic indicators, ScanSource is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Jones Soda and ScanSource

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

The idea behind Jones Soda Co and ScanSource 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.