Correlation Between LightInTheBox Holding and Phoenix New
Can any of the company-specific risk be diversified away by investing in both LightInTheBox Holding and Phoenix New 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 Phoenix New 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 Phoenix New Media, you can compare the effects of market volatilities on LightInTheBox Holding and Phoenix New 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 Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of LightInTheBox Holding and Phoenix New.
Diversification Opportunities for LightInTheBox Holding and Phoenix New
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LightInTheBox and Phoenix is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding LightInTheBox Holding Co and Phoenix New Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix New Media 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 Phoenix New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix New Media has no effect on the direction of LightInTheBox Holding i.e., LightInTheBox Holding and Phoenix New go up and down completely randomly.
Pair Corralation between LightInTheBox Holding and Phoenix New
Given the investment horizon of 90 days LightInTheBox Holding Co is expected to generate 1.5 times more return on investment than Phoenix New. However, LightInTheBox Holding is 1.5 times more volatile than Phoenix New Media. It trades about 0.13 of its potential returns per unit of risk. Phoenix New Media is currently generating about 0.09 per unit of risk. If you would invest 120.00 in LightInTheBox Holding Co on June 12, 2025 and sell it today you would earn a total of 57.00 from holding LightInTheBox Holding Co or generate 47.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
LightInTheBox Holding Co vs. Phoenix New Media
Performance |
| Timeline |
| LightInTheBox Holding |
| Phoenix New Media |
LightInTheBox Holding and Phoenix New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LightInTheBox Holding and Phoenix New
The main advantage of trading using opposite LightInTheBox Holding and Phoenix New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LightInTheBox Holding position performs unexpectedly, Phoenix New 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 Phoenix New will offset losses from the drop in Phoenix New's long position.| LightInTheBox Holding vs. Hour Loop | LightInTheBox Holding vs. Yunji Inc | LightInTheBox Holding vs. D MARKET Electronic Services | LightInTheBox Holding vs. 1StdibsCom |
| Phoenix New vs. Cheetah Mobile | Phoenix New vs. Asset Entities Class | Phoenix New vs. Thryv Holdings | Phoenix New vs. LightInTheBox Holding Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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