Correlation Between Global Ship and MOTOROLA SOLTN

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Global Ship and MOTOROLA SOLTN 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 Global Ship and MOTOROLA SOLTN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and MOTOROLA SOLTN , you can compare the effects of market volatilities on Global Ship and MOTOROLA SOLTN 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 Global Ship with a short position of MOTOROLA SOLTN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and MOTOROLA SOLTN.

Diversification Opportunities for Global Ship and MOTOROLA SOLTN

GlobalMOTOROLADiversified AwayGlobalMOTOROLADiversified Away100%
-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between Global and MOTOROLA is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and MOTOROLA SOLTN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOTOROLA SOLTN and Global Ship 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 Global Ship Lease are associated (or correlated) with MOTOROLA SOLTN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOTOROLA SOLTN has no effect on the direction of Global Ship i.e., Global Ship and MOTOROLA SOLTN go up and down completely randomly.

Pair Corralation between Global Ship and MOTOROLA SOLTN

Assuming the 90 days horizon Global Ship Lease is expected to under-perform the MOTOROLA SOLTN. In addition to that, Global Ship is 1.21 times more volatile than MOTOROLA SOLTN . It trades about -0.02 of its total potential returns per unit of risk. MOTOROLA SOLTN is currently generating about 0.09 per unit of volatility. If you would invest  41,380  in MOTOROLA SOLTN on October 31, 2024 and sell it today you would earn a total of  3,250  from holding MOTOROLA SOLTN or generate 7.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.33%
ValuesDaily Returns

Global Ship Lease  vs.  MOTOROLA SOLTN

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-50510
JavaScript chart by amCharts 3.21.1537H MTLA
       Timeline  
Global Ship Lease 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Global Ship Lease has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Global Ship is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2020.52121.52222.5
MOTOROLA SOLTN 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MOTOROLA SOLTN are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, MOTOROLA SOLTN may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan410420430440450460470480

Global Ship and MOTOROLA SOLTN Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.93-2.19-1.46-0.720.00.671.352.022.7 0.040.060.080.100.120.140.160.18
JavaScript chart by amCharts 3.21.1537H MTLA
       Returns  

Pair Trading with Global Ship and MOTOROLA SOLTN

The main advantage of trading using opposite Global Ship and MOTOROLA SOLTN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, MOTOROLA SOLTN 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 SOLTN will offset losses from the drop in MOTOROLA SOLTN's long position.
The idea behind Global Ship Lease and MOTOROLA SOLTN 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 Stocks Directory module to find actively traded stocks across global markets.

Other Complementary Tools

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios