Correlation Between Grom Social and Auddia
Can any of the company-specific risk be diversified away by investing in both Grom Social and Auddia 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 Grom Social and Auddia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grom Social Enterprises and Auddia Inc, you can compare the effects of market volatilities on Grom Social and Auddia 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 Grom Social with a short position of Auddia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grom Social and Auddia.
Diversification Opportunities for Grom Social and Auddia
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grom and Auddia is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Grom Social Enterprises and Auddia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auddia Inc and Grom Social 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 Grom Social Enterprises are associated (or correlated) with Auddia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auddia Inc has no effect on the direction of Grom Social i.e., Grom Social and Auddia go up and down completely randomly.
Pair Corralation between Grom Social and Auddia
Given the investment horizon of 90 days Grom Social Enterprises is expected to under-perform the Auddia. But the stock apears to be less risky and, when comparing its historical volatility, Grom Social Enterprises is 1.29 times less risky than Auddia. The stock trades about -0.14 of its potential returns per unit of risk. The Auddia Inc is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 500.00 in Auddia Inc on August 28, 2024 and sell it today you would lose (445.00) from holding Auddia Inc or give up 89.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 68.42% |
| Values | Daily Returns |
Grom Social Enterprises vs. Auddia Inc
Performance |
| Timeline |
| Grom Social Enterprises |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Auddia Inc |
Grom Social and Auddia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grom Social and Auddia
The main advantage of trading using opposite Grom Social and Auddia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grom Social position performs unexpectedly, Auddia 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 Auddia will offset losses from the drop in Auddia's long position.| Grom Social vs. Digital Brands Group | Grom Social vs. Paltalk | Grom Social vs. DatChat | Grom Social vs. Ensysce Biosciences |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |