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
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VNET and LightInTheBox is 0.37. 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 under-perform the LightInTheBox Holding. But the stock apears to be less risky and, when comparing its historical volatility, VNET Group DRC is 2.66 times less risky than LightInTheBox Holding. The stock trades about -0.07 of its potential returns per unit of risk. The LightInTheBox Holding Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 198.00 in LightInTheBox Holding Co on October 1, 2025 and sell it today you would earn a total of 47.00 from holding LightInTheBox Holding Co or generate 23.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |