Correlation Between ProShares Metaverse and Fidelity Metaverse
Can any of the company-specific risk be diversified away by investing in both ProShares Metaverse 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 ProShares Metaverse and Fidelity Metaverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Metaverse ETF and Fidelity Metaverse ETF, you can compare the effects of market volatilities on ProShares Metaverse 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 ProShares Metaverse with a short position of Fidelity Metaverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Metaverse and Fidelity Metaverse.
Diversification Opportunities for ProShares Metaverse and Fidelity Metaverse
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProShares and Fidelity is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Metaverse ETF 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 ProShares Metaverse 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 ProShares Metaverse ETF 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 ProShares Metaverse i.e., ProShares Metaverse and Fidelity Metaverse go up and down completely randomly.
Pair Corralation between ProShares Metaverse and Fidelity Metaverse
Given the investment horizon of 90 days ProShares Metaverse ETF is expected to generate 1.71 times more return on investment than Fidelity Metaverse. However, ProShares Metaverse is 1.71 times more volatile than Fidelity Metaverse ETF. It trades about 0.17 of its potential returns per unit of risk. Fidelity Metaverse ETF is currently generating about 0.08 per unit of risk. If you would invest 4,378 in ProShares Metaverse ETF on November 1, 2024 and sell it today you would earn a total of 1,002 from holding ProShares Metaverse ETF or generate 22.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Metaverse ETF vs. Fidelity Metaverse ETF
Performance |
| Timeline |
| ProShares Metaverse ETF |
| Fidelity Metaverse ETF |
ProShares Metaverse and Fidelity Metaverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Metaverse and Fidelity Metaverse
The main advantage of trading using opposite ProShares Metaverse and Fidelity Metaverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Metaverse 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.| ProShares Metaverse vs. Roundhill Ball Metaverse | ProShares Metaverse vs. Deltagen | ProShares Metaverse vs. Fidelity Metaverse ETF |
| Fidelity Metaverse vs. Fidelity Crypto Industry | Fidelity Metaverse vs. Fidelity Covington Trust | Fidelity Metaverse vs. ProShares Metaverse ETF | Fidelity Metaverse vs. Fidelity Covington Trust |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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