Correlation Between Worksport and LightInTheBox Holding

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

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

Diversification Opportunities for Worksport and LightInTheBox Holding

-0.14

Correlation Coefficient

Worksport  LightInTheBox Holding

Good diversification

The 3 months correlation between Worksport and LightInTheBox is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Worksport and LightInTheBox Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightInTheBox Holding and Worksport 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 Worksport 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 Worksport i.e., Worksport and LightInTheBox Holding go up and down completely randomly.

Pair Corralation between Worksport and LightInTheBox Holding

Given the investment horizon of 90 days Worksport is expected to under-perform the LightInTheBox Holding. But the stock apears to be less risky and, when comparing its historical volatility, Worksport is 1.28 times less risky than LightInTheBox Holding. The stock trades about -0.06 of its potential returns per unit of risk. The LightInTheBox Holding Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  125.00  in LightInTheBox Holding Co on August 21, 2025 and sell it today you would earn a total of  62.00  from holding LightInTheBox Holding Co or generate 49.6% return on investment over 90 days.

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

Worksport  vs.  LightInTheBox Holding Co

Worksport

Risk-Adjusted Performance

Weakest

Over the last 90 days Worksport has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

LightInTheBox Holding

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in LightInTheBox Holding Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, LightInTheBox Holding sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Worksport and LightInTheBox Holding

The main advantage of trading using opposite Worksport and LightInTheBox Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worksport 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 Worksport 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.