Correlation Between Takung Art and LightInTheBox Holding
Can any of the company-specific risk be diversified away by investing in both Takung Art 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 Takung Art and LightInTheBox Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Takung Art Co and LightInTheBox Holding Co, you can compare the effects of market volatilities on Takung Art 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 Takung Art with a short position of LightInTheBox Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Takung Art and LightInTheBox Holding.
Diversification Opportunities for Takung Art and LightInTheBox Holding
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Takung and LightInTheBox is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Takung Art Co and LightInTheBox Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightInTheBox Holding and Takung Art 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 Takung Art Co 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 Takung Art i.e., Takung Art and LightInTheBox Holding go up and down completely randomly.
Pair Corralation between Takung Art and LightInTheBox Holding
If you would invest 23.00 in Takung Art Co on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Takung Art Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Takung Art Co vs. LightInTheBox Holding Co
Performance |
| Timeline |
| Takung Art |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LightInTheBox Holding |
Takung Art and LightInTheBox Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Takung Art and LightInTheBox Holding
The main advantage of trading using opposite Takung Art and LightInTheBox Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Takung Art 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.| Takung Art vs. Oriental Culture Holding | Takung Art vs. Dolphin Entertainment | Takung Art vs. Hall of Fame | Takung Art vs. Wisekey International Holding |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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