Correlation Between VanEck Video and Fidelity Metaverse
Can any of the company-specific risk be diversified away by investing in both VanEck Video and Fidelity Metaverse 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 VanEck Video and Fidelity Metaverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Video Gaming and Fidelity Metaverse ETF, you can compare the effects of market volatilities on VanEck Video and Fidelity Metaverse 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 VanEck Video with a short position of Fidelity Metaverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Video and Fidelity Metaverse.
Diversification Opportunities for VanEck Video and Fidelity Metaverse
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and Fidelity is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Video Gaming and Fidelity Metaverse ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Metaverse ETF and VanEck Video 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 VanEck Video Gaming are associated (or correlated) with Fidelity Metaverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Metaverse ETF has no effect on the direction of VanEck Video i.e., VanEck Video and Fidelity Metaverse go up and down completely randomly.
Pair Corralation between VanEck Video and Fidelity Metaverse
Given the investment horizon of 90 days VanEck Video Gaming is expected to generate 1.05 times more return on investment than Fidelity Metaverse. However, VanEck Video is 1.05 times more volatile than Fidelity Metaverse ETF. It trades about 0.1 of its potential returns per unit of risk. Fidelity Metaverse ETF is currently generating about 0.07 per unit of risk. If you would invest 4,434 in VanEck Video Gaming on August 26, 2024 and sell it today you would earn a total of 3,853 from holding VanEck Video Gaming or generate 86.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Video Gaming vs. Fidelity Metaverse ETF
Performance |
| Timeline |
| VanEck Video Gaming |
| Fidelity Metaverse ETF |
VanEck Video and Fidelity Metaverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Video and Fidelity Metaverse
The main advantage of trading using opposite VanEck Video and Fidelity Metaverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Video position performs unexpectedly, Fidelity Metaverse 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 Fidelity Metaverse will offset losses from the drop in Fidelity Metaverse's long position.| VanEck Video vs. Roundhill Video Games | VanEck Video vs. Global X Video | VanEck Video vs. Amplify ETF Trust | VanEck Video vs. Global X Cloud |
| Fidelity Metaverse vs. Vanguard Industrials Index | Fidelity Metaverse vs. Vanguard Materials Index | Fidelity Metaverse vs. Vanguard Consumer Discretionary | Fidelity Metaverse vs. Vanguard Consumer Staples |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |