Correlation Between Tian Ruixiang and Baosheng Media

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

By analyzing existing cross correlation between Tian Ruixiang Holdings and Baosheng Media Group, you can compare the effects of market volatilities on Tian Ruixiang and Baosheng Media 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 Tian Ruixiang with a short position of Baosheng Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tian Ruixiang and Baosheng Media.

Diversification Opportunities for Tian Ruixiang and Baosheng Media

-0.26

Correlation Coefficient

Tian Ruixiang  Baosheng Media

Very good diversification

The 3 months correlation between Tian and Baosheng is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tian Ruixiang Holdings and Baosheng Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baosheng Media Group and Tian Ruixiang 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 Tian Ruixiang Holdings are associated (or correlated) with Baosheng Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baosheng Media Group has no effect on the direction of Tian Ruixiang i.e., Tian Ruixiang and Baosheng Media go up and down completely randomly.

Pair Corralation between Tian Ruixiang and Baosheng Media

Given the investment horizon of 90 days Tian Ruixiang Holdings is expected to under-perform the Baosheng Media. But the stock apears to be less risky and, when comparing its historical volatility, Tian Ruixiang Holdings is 2.05 times less risky than Baosheng Media. The stock trades about -0.12 of its potential returns per unit of risk. The Baosheng Media Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  198.00  in Baosheng Media Group on May 5, 2025 and sell it today you would earn a total of  89.00  from holding Baosheng Media Group or generate 44.95% return on investment over 90 days.

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

Tian Ruixiang Holdings  vs.  Baosheng Media Group

Tian Ruixiang Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tian Ruixiang Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Baosheng Media Group

Risk-Adjusted Performance

OK

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

Pair Trading with Tian Ruixiang and Baosheng Media

The main advantage of trading using opposite Tian Ruixiang and Baosheng Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tian Ruixiang position performs unexpectedly, Baosheng Media 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 Baosheng Media will offset losses from the drop in Baosheng Media's long position.

The idea behind Tian Ruixiang Holdings and Baosheng Media Group 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.