Correlation Between Grom Social and Onfolio Holdings
Can any of the company-specific risk be diversified away by investing in both Grom Social and Onfolio Holdings 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 Onfolio Holdings 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 Onfolio Holdings, you can compare the effects of market volatilities on Grom Social and Onfolio Holdings 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 Onfolio Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grom Social and Onfolio Holdings.
Diversification Opportunities for Grom Social and Onfolio Holdings
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grom and Onfolio is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Grom Social Enterprises and Onfolio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onfolio Holdings 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 Onfolio Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onfolio Holdings has no effect on the direction of Grom Social i.e., Grom Social and Onfolio Holdings go up and down completely randomly.
Pair Corralation between Grom Social and Onfolio Holdings
Given the investment horizon of 90 days Grom Social Enterprises is expected to under-perform the Onfolio Holdings. In addition to that, Grom Social is 1.47 times more volatile than Onfolio Holdings. It trades about -0.12 of its total potential returns per unit of risk. Onfolio Holdings is currently generating about 0.03 per unit of volatility. If you would invest 144.00 in Onfolio Holdings on August 23, 2024 and sell it today you would lose (25.00) from holding Onfolio Holdings or give up 17.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.3% |
| Values | Daily Returns |
Grom Social Enterprises vs. Onfolio Holdings
Performance |
| Timeline |
| Grom Social Enterprises |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Onfolio Holdings |
Grom Social and Onfolio Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grom Social and Onfolio Holdings
The main advantage of trading using opposite Grom Social and Onfolio Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grom Social position performs unexpectedly, Onfolio Holdings 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 Onfolio Holdings will offset losses from the drop in Onfolio Holdings' long position.| Grom Social vs. Digital Brands Group | Grom Social vs. Paltalk | Grom Social vs. DatChat | Grom Social vs. Ensysce Biosciences |
| Onfolio Holdings vs. Vivid Seats | Onfolio Holdings vs. EverQuote Class A | Onfolio Holdings vs. Asset Entities Class | Onfolio Holdings vs. Zhihu Inc ADR |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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