Correlation Between Grom Social and Data Storage

Can any of the company-specific risk be diversified away by investing in both Grom Social and Data Storage 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 Data Storage 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 Data Storage, you can compare the effects of market volatilities on Grom Social and Data Storage 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 Data Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grom Social and Data Storage.

Diversification Opportunities for Grom Social and Data Storage

0.0

Correlation Coefficient

Grom Social  Data Storage

Pay attention - limited upside

The 3 months correlation between Grom and Data is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grom Social Enterprises and Data Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Storage 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 Data Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Storage has no effect on the direction of Grom Social i.e., Grom Social and Data Storage go up and down completely randomly.

Pair Corralation between Grom Social and Data Storage

If you would invest (100.00) in Grom Social Enterprises on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Grom Social Enterprises or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Grom Social Enterprises  vs.  Data Storage

Grom Social Enterprises

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grom Social Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Grom Social is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Data Storage

Risk-Adjusted Performance

Very Weak

Over the last 90 days Data Storage has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Grom Social and Data Storage

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

The idea behind Grom Social Enterprises and Data Storage 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.

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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.