The logic I see in paper tuning is that you can see where the point enters and where the nock follows. I think the goal is to get the point and nock to go through the same hole in the paper made by the point.. If the nock is high/right, to me it seems like the nock is being thrown to a different location than the point and the goal would be to move the point impact to the nock tear. From the looks of the picture, if it is shown to be in the correct rotation that the arrow rest could be moved up and inward (on a right handed bow) or the nock set down and the rest inward.