Correlation Between Linkage Global and LightInTheBox Holding

Can any of the company-specific risk be diversified away by investing in both Linkage Global 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 Linkage Global and LightInTheBox Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Linkage Global Ordinary and LightInTheBox Holding Co, you can compare the effects of market volatilities on Linkage Global 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 Linkage Global with a short position of LightInTheBox Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linkage Global and LightInTheBox Holding.

Diversification Opportunities for Linkage Global and LightInTheBox Holding

-0.54

Correlation Coefficient

Linkage Global  LightInTheBox Holding

Excellent diversification

The 3 months correlation between Linkage and LightInTheBox is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Linkage Global Ordinary and LightInTheBox Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightInTheBox Holding and Linkage Global 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 Linkage Global Ordinary 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 Linkage Global i.e., Linkage Global and LightInTheBox Holding go up and down completely randomly.

Pair Corralation between Linkage Global and LightInTheBox Holding

Given the investment horizon of 90 days Linkage Global Ordinary is expected to under-perform the LightInTheBox Holding. But the stock apears to be less risky and, when comparing its historical volatility, Linkage Global Ordinary is 1.34 times less risky than LightInTheBox Holding. The stock trades about -0.08 of its potential returns per unit of risk. The LightInTheBox Holding Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  130.00  in LightInTheBox Holding Co on July 20, 2025 and sell it today you would earn a total of  114.00  from holding LightInTheBox Holding Co or generate 87.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Linkage Global Ordinary  vs.  LightInTheBox Holding Co

Linkage Global Ordinary

Risk-Adjusted Performance

Weakest

Over the last 90 days Linkage Global Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

LightInTheBox Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LightInTheBox Holding Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, LightInTheBox Holding sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Linkage Global and LightInTheBox Holding

The main advantage of trading using opposite Linkage Global and LightInTheBox Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linkage Global 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.

The idea behind Linkage Global Ordinary and LightInTheBox Holding Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.