Correlation Between Nocera and KYN Capital

Can any of the company-specific risk be diversified away by investing in both Nocera and KYN Capital 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 Nocera and KYN Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nocera Inc and KYN Capital Group, you can compare the effects of market volatilities on Nocera and KYN Capital 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 Nocera with a short position of KYN Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nocera and KYN Capital.

Diversification Opportunities for Nocera and KYN Capital

-0.22

Correlation Coefficient

Nocera  KYN Capital

Very good diversification

The 3 months correlation between Nocera and KYN is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Nocera Inc and KYN Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KYN Capital Group and Nocera 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 Nocera Inc are associated (or correlated) with KYN Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KYN Capital Group has no effect on the direction of Nocera i.e., Nocera and KYN Capital go up and down completely randomly.

Pair Corralation between Nocera and KYN Capital

Given the investment horizon of 90 days Nocera Inc is expected to generate 0.4 times more return on investment than KYN Capital. However, Nocera Inc is 2.5 times less risky than KYN Capital. It trades about 0.16 of its potential returns per unit of risk. KYN Capital Group is currently generating about 0.04 per unit of risk. If you would invest  101.00  in Nocera Inc on May 7, 2025 and sell it today you would earn a total of  59.00  from holding Nocera Inc or generate 58.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Nocera Inc  vs.  KYN Capital Group

Nocera Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nocera Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Nocera sustained solid returns over the last few months and may actually be approaching a breakup point.

KYN Capital Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in KYN Capital Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, KYN Capital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nocera and KYN Capital

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

The idea behind Nocera Inc and KYN Capital Group 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.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.