Correlation Between Infinera and Motorola Solutions

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

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

Diversification Opportunities for Infinera and Motorola Solutions

0.0

Correlation Coefficient

Infinera  Motorola Solutions

Pay attention - limited upside

The 3 months correlation between Infinera and Motorola is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Infinera and Motorola Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motorola Solutions and Infinera 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 Infinera are associated (or correlated) with Motorola Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motorola Solutions has no effect on the direction of Infinera i.e., Infinera and Motorola Solutions go up and down completely randomly.

Pair Corralation between Infinera and Motorola Solutions

If you would invest  40,430  in Motorola Solutions on May 4, 2025 and sell it today you would earn a total of  3,241  from holding Motorola Solutions or generate 8.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Infinera  vs.  Motorola Solutions

Infinera

Risk-Adjusted Performance

Very Weak

Over the last 90 days Infinera has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Infinera is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Motorola Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Motorola Solutions are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Motorola Solutions may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Infinera and Motorola Solutions

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

The idea behind Infinera and Motorola Solutions 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.

Check out your portfolio center.

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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .