Correlation Between SunCar Technology and LightInTheBox Holding

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

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

Diversification Opportunities for SunCar Technology and LightInTheBox Holding

-0.03

Correlation Coefficient

SunCar Technology  LightInTheBox Holding

Good diversification

The 3 months correlation between SunCar and LightInTheBox is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SunCar Technology Group and LightInTheBox Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightInTheBox Holding and SunCar Technology 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 SunCar Technology Group 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 SunCar Technology i.e., SunCar Technology and LightInTheBox Holding go up and down completely randomly.

Pair Corralation between SunCar Technology and LightInTheBox Holding

Assuming the 90 days horizon SunCar Technology is expected to generate 1.34 times less return on investment than LightInTheBox Holding. In addition to that, SunCar Technology is 2.03 times more volatile than LightInTheBox Holding Co. It trades about 0.1 of its total potential returns per unit of risk. LightInTheBox Holding Co is currently generating about 0.26 per unit of volatility. If you would invest  127.00  in LightInTheBox Holding Co on August 4, 2025 and sell it today you would earn a total of  245.00  from holding LightInTheBox Holding Co or generate 192.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.77%
Values	Daily Returns

SunCar Technology Group  vs.  LightInTheBox Holding Co

SunCar Technology

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SunCar Technology Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, SunCar Technology showed solid returns over the last few months and may actually be approaching a breakup point.

LightInTheBox Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in LightInTheBox Holding Co are ranked lower than 20 (%) 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 SunCar Technology and LightInTheBox Holding

The main advantage of trading using opposite SunCar Technology and LightInTheBox Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunCar Technology 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 SunCar Technology Group 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.