Correlation Between Tortoise Capital and IShares Core

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

By analyzing existing cross correlation between Tortoise Capital Series and iShares Core SP, you can compare the effects of market volatilities on Tortoise Capital and IShares Core 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 Tortoise Capital with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tortoise Capital and IShares Core.

Diversification Opportunities for Tortoise Capital and IShares Core

0.87

Correlation Coefficient

Tortoise Capital  IShares Core

Very poor diversification

The 3 months correlation between Tortoise and IShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tortoise Capital Series and iShares Core SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core SP and Tortoise Capital 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 Tortoise Capital Series are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core SP has no effect on the direction of Tortoise Capital i.e., Tortoise Capital and IShares Core go up and down completely randomly.

Pair Corralation between Tortoise Capital and IShares Core

Given the investment horizon of 90 days Tortoise Capital Series is expected to generate 2.47 times more return on investment than IShares Core. However, Tortoise Capital is 2.47 times more volatile than iShares Core SP. It trades about 0.17 of its potential returns per unit of risk. iShares Core SP is currently generating about 0.13 per unit of risk. If you would invest  2,560  in Tortoise Capital Series on September 2, 2025 and sell it today you would earn a total of  579.80  from holding Tortoise Capital Series or generate 22.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.46%
Values	Daily Returns

Tortoise Capital Series  vs.  iShares Core SP

Tortoise Capital Series

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Capital Series are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Tortoise Capital demonstrated solid returns over the last few months and may actually be approaching a breakup point.

iShares Core SP

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Core SP are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, IShares Core may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Tortoise Capital and IShares Core

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

The idea behind Tortoise Capital Series and iShares Core SP 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.