How would I achieve this effect properly?

I don’t have a code yet but I would love to get an explanation on how I would be able to do what I wish to complete below.

Whenever you hover over someone’s character, you would be able to see specific groups that they’re in.

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In short you first find whether the mouse is hovering over a player. If so you get the position of the mouse and create a UI tooltip that will follow the mouse as long as it is still within the player. Inside that UI element you would put text labels and whatever else you want in order to display the necessary information.
As for the actual group information, one method could be to use GroupService:GetGroupsAsync. You just send the player as a parameter to the function and it will return an array containing a ton of group information.
https://developer.roblox.com/en-us/api-reference/function/GroupService/GetGroupsAsync

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