Correlation Between VNET Group and LightInTheBox Holding
Can any of the company-specific risk be diversified away by investing in both VNET Group 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 VNET Group and LightInTheBox Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VNET Group DRC and LightInTheBox Holding Co, you can compare the effects of market volatilities on VNET Group 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 VNET Group with a short position of LightInTheBox Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of VNET Group and LightInTheBox Holding.
Diversification Opportunities for VNET Group and LightInTheBox Holding
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VNET and LightInTheBox is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding VNET Group DRC and LightInTheBox Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightInTheBox Holding and VNET Group 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 VNET Group DRC 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 VNET Group i.e., VNET Group and LightInTheBox Holding go up and down completely randomly.
Pair Corralation between VNET Group and LightInTheBox Holding
Given the investment horizon of 90 days VNET Group DRC is expected to generate 0.81 times more return on investment than LightInTheBox Holding. However, VNET Group DRC is 1.23 times less risky than LightInTheBox Holding. It trades about 0.2 of its potential returns per unit of risk. LightInTheBox Holding Co is currently generating about 0.13 per unit of risk. 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 |
VNET Group DRC vs. LightInTheBox Holding Co
Performance |
| Timeline |
| VNET Group DRC |
| LightInTheBox Holding |
VNET Group and LightInTheBox Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VNET Group and LightInTheBox Holding
The main advantage of trading using opposite VNET Group and LightInTheBox Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VNET Group 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.| VNET Group vs. C3 Ai Inc | VNET Group vs. Globant SA | VNET Group vs. Innodata | VNET Group vs. CLARIVATE PLC |
| LightInTheBox Holding vs. The Brand House | LightInTheBox Holding vs. QVC Group | LightInTheBox Holding vs. Tandy Leather Factory | LightInTheBox Holding vs. Tuniu Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |