Correlation Between Jones Soda and Taiwan Semiconductor

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

Diversification Opportunities for Jones Soda and Taiwan Semiconductor

-0.43

Correlation Coefficient

Jones Soda  Taiwan Semiconductor

Very good diversification

The 3 months correlation between Jones and Taiwan is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jones Soda Co and Taiwan Semiconductor Manufactu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Semiconductor 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 Taiwan Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Semiconductor has no effect on the direction of Jones Soda i.e., Jones Soda and Taiwan Semiconductor go up and down completely randomly.

Pair Corralation between Jones Soda and Taiwan Semiconductor

Given the investment horizon of 90 days Jones Soda Co is expected to under-perform the Taiwan Semiconductor. In addition to that, Jones Soda is 39.04 times more volatile than Taiwan Semiconductor Manufacturing. It trades about -0.02 of its total potential returns per unit of risk. Taiwan Semiconductor Manufacturing is currently generating about 0.12 per unit of volatility. If you would invest  1,708  in Taiwan Semiconductor Manufacturing on August 27, 2025 and sell it today you would earn a total of  16.00  from holding Taiwan Semiconductor Manufacturing or generate 0.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Jones Soda Co  vs.  Taiwan Semiconductor Manufactu

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.

Taiwan Semiconductor

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Taiwan Semiconductor Manufacturing are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Taiwan Semiconductor is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jones Soda and Taiwan Semiconductor

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

The idea behind Jones Soda Co and Taiwan Semiconductor Manufacturing 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.