Interdependence and portfolio scheme of emerging industry of Metaverse

The Metaverse industry has attracted global attention and holds significant potential for investment, yet its investment environment and portfolio strategies remain underexplored, particularly in China. This study analyzes the industry’s structure and interdependencies using returns from 110 listed Metaverse firms. Employing a Kendall-based network, we identify leaders and peripheral enterprises within the industry. From a micro-perspective, we propose a hybrid Kendall-based investment scheme, showing that portfolios of peripheral firms consistently outperform those of leaders and the overall market. The scheme also proves robust across different network scales, investor preferences, and market conditions. Overall, this research advances understanding of the Metaverse industry by combining a macro view of its industrial environment with a micro focus on portfolio design, offering practical insights for regulators, managers, and investors. • This study maps the interdependence structure of the Metaverse industry. • It introduces a unique Kendall-based hybrid network and portfolio scheme. • The study provides insights for investors, suggesting that peripheral enterprises offer stability. • For regulators, the findings support a “too connected to fail” framework.