Correlation Between Evgo and LightInTheBox Holding
Can any of the company-specific risk be diversified away by investing in both Evgo and LightInTheBox Holding 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 Evgo and LightInTheBox Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evgo Inc and LightInTheBox Holding Co, you can compare the effects of market volatilities on Evgo and LightInTheBox Holding 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 Evgo with a short position of LightInTheBox Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evgo and LightInTheBox Holding.
Diversification Opportunities for Evgo and LightInTheBox Holding
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Evgo and LightInTheBox is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Evgo Inc and LightInTheBox Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightInTheBox Holding and Evgo 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 Evgo Inc are associated (or correlated) with LightInTheBox Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LightInTheBox Holding has no effect on the direction of Evgo i.e., Evgo and LightInTheBox Holding go up and down completely randomly.
Pair Corralation between Evgo and LightInTheBox Holding
Given the investment horizon of 90 days Evgo Inc is expected to generate 1.07 times more return on investment than LightInTheBox Holding. However, Evgo is 1.07 times more volatile than LightInTheBox Holding Co. It trades about 0.03 of its potential returns per unit of risk. LightInTheBox Holding Co is currently generating about -0.02 per unit of risk. If you would invest 595.00 in Evgo Inc on August 24, 2024 and sell it today you would earn a total of 41.00 from holding Evgo Inc or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evgo Inc vs. LightInTheBox Holding Co
Performance |
| Timeline |
| Evgo Inc |
| LightInTheBox Holding |
Evgo and LightInTheBox Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evgo and LightInTheBox Holding
The main advantage of trading using opposite Evgo and LightInTheBox Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evgo position performs unexpectedly, LightInTheBox Holding 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 LightInTheBox Holding will offset losses from the drop in LightInTheBox Holding's long position.The idea behind Evgo Inc and LightInTheBox Holding 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.| LightInTheBox Holding vs. Kidpik Corp | LightInTheBox Holding vs. Qurate Retail Series | LightInTheBox Holding vs. Natural Health Trend | LightInTheBox Holding vs. Liquidity Services |
Check out your portfolio center.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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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