Correlation Between LightInTheBox Holding and VNET Group
Can any of the company-specific risk be diversified away by investing in both LightInTheBox Holding and VNET Group 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 LightInTheBox Holding and VNET Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LightInTheBox Holding Co and VNET Group DRC, you can compare the effects of market volatilities on LightInTheBox Holding and VNET Group 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 LightInTheBox Holding with a short position of VNET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of LightInTheBox Holding and VNET Group.
Diversification Opportunities for LightInTheBox Holding and VNET Group
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LightInTheBox and VNET is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding LightInTheBox Holding Co and VNET Group DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VNET Group DRC and LightInTheBox Holding 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 LightInTheBox Holding Co are associated (or correlated) with VNET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VNET Group DRC has no effect on the direction of LightInTheBox Holding i.e., LightInTheBox Holding and VNET Group go up and down completely randomly.
Pair Corralation between LightInTheBox Holding and VNET Group
Given the investment horizon of 90 days LightInTheBox Holding is expected to generate 1.28 times less return on investment than VNET Group. In addition to that, LightInTheBox Holding is 1.23 times more volatile than VNET Group DRC. It trades about 0.13 of its total potential returns per unit of risk. VNET Group DRC is currently generating about 0.2 per unit of volatility. If you would invest 858.00 in VNET Group DRC on November 17, 2025 and sell it today you would earn a total of 522.00 from holding VNET Group DRC or generate 60.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LightInTheBox Holding Co vs. VNET Group DRC
Performance |
| Timeline |
| LightInTheBox Holding |
| VNET Group DRC |
LightInTheBox Holding and VNET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LightInTheBox Holding and VNET Group
The main advantage of trading using opposite LightInTheBox Holding and VNET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LightInTheBox Holding position performs unexpectedly, VNET Group 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 VNET Group will offset losses from the drop in VNET Group's long position.| LightInTheBox Holding vs. The Brand House | LightInTheBox Holding vs. QVC Group | LightInTheBox Holding vs. Tandy Leather Factory | LightInTheBox Holding vs. Tuniu Corp |
| VNET Group vs. C3 Ai Inc | VNET Group vs. Globant SA | VNET Group vs. Innodata | VNET Group vs. CLARIVATE PLC |
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 Stocks Directory module to find actively traded stocks across global markets.
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