Correlation Between SHF Holdings and Nocera

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

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

Diversification Opportunities for SHF Holdings and Nocera

0.56

Correlation Coefficient

SHF Holdings  Nocera

Very weak diversification

The 3 months correlation between SHF and Nocera is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SHF Holdings and Nocera Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nocera Inc and SHF Holdings 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 SHF Holdings are associated (or correlated) with Nocera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nocera Inc has no effect on the direction of SHF Holdings i.e., SHF Holdings and Nocera go up and down completely randomly.

Pair Corralation between SHF Holdings and Nocera

Given the investment horizon of 90 days SHF Holdings is expected to generate 14.39 times less return on investment than Nocera. In addition to that, SHF Holdings is 1.18 times more volatile than Nocera Inc. It trades about 0.01 of its total potential returns per unit of risk. Nocera Inc is currently generating about 0.13 per unit of volatility. If you would invest  106.00  in Nocera Inc on May 5, 2025 and sell it today you would earn a total of  56.00  from holding Nocera Inc or generate 52.83% return on investment over 90 days.

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

SHF Holdings  vs.  Nocera Inc

SHF Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days SHF Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, SHF Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Nocera Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nocera Inc are ranked lower than 10 (%) 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.

Pair Trading with SHF Holdings and Nocera

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

The idea behind SHF Holdings and Nocera Inc 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.