Correlation Between Kaspa and NEBL

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

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

Diversification Opportunities for Kaspa and NEBL

-0.58

Correlation Coefficient

Kaspa  NEBL

Excellent diversification

The 3 months correlation between Kaspa and NEBL is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kaspa and NEBL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEBL and Kaspa 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 Kaspa are associated (or correlated) with NEBL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEBL has no effect on the direction of Kaspa i.e., Kaspa and NEBL go up and down completely randomly.

Pair Corralation between Kaspa and NEBL

Assuming the 90 days trading horizon Kaspa is expected to generate 55.58 times less return on investment than NEBL. But when comparing it to its historical volatility, Kaspa is 22.73 times less risky than NEBL. It trades about 0.05 of its potential returns per unit of risk. NEBL is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.13  in NEBL on April 24, 2025 and sell it today you would earn a total of  17.87  from holding NEBL or generate 13703.68% return on investment over 90 days.

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

Kaspa  vs.  NEBL

Kaspa

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kaspa are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Kaspa exhibited solid returns over the last few months and may actually be approaching a breakup point.

NEBL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NEBL are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, NEBL exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kaspa and NEBL

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

The idea behind Kaspa and NEBL 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.