Correlation Between IShares Core and DHT Holdings
Can any of the company-specific risk be diversified away by investing in both IShares Core and DHT Holdings 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 IShares Core and DHT Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and DHT Holdings, you can compare the effects of market volatilities on IShares Core and DHT Holdings 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 IShares Core with a short position of DHT Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and DHT Holdings.
Diversification Opportunities for IShares Core and DHT Holdings
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and DHT is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and DHT Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHT Holdings and IShares Core 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 iShares Core SP are associated (or correlated) with DHT Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHT Holdings has no effect on the direction of IShares Core i.e., IShares Core and DHT Holdings go up and down completely randomly.
Pair Corralation between IShares Core and DHT Holdings
Considering the 90-day investment horizon IShares Core is expected to generate 3.18 times less return on investment than DHT Holdings. But when comparing it to its historical volatility, iShares Core SP is 2.63 times less risky than DHT Holdings. It trades about 0.14 of its potential returns per unit of risk. DHT Holdings is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,110 in DHT Holdings on August 13, 2025 and sell it today you would earn a total of 226.00 from holding DHT Holdings or generate 20.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core SP vs. DHT Holdings
Performance |
| Timeline |
| iShares Core SP |
| DHT Holdings |
IShares Core and DHT Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and DHT Holdings
The main advantage of trading using opposite IShares Core and DHT Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, DHT Holdings 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 DHT Holdings will offset losses from the drop in DHT Holdings' long position.| IShares Core vs. SPDR SP 500 | IShares Core vs. iShares Core SP | IShares Core vs. iShares Core SP | IShares Core vs. iShares SP 500 |
| DHT Holdings vs. Teekay Tankers | DHT Holdings vs. Torm PLC Class | DHT Holdings vs. International Seaways | DHT Holdings vs. Delek Logistics Partners |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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