Looking to diversify beyond AAXJ? The ETFs below have the lowest correlation with AAXJ — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from AAXJ.
Best Diversifiers for AAXJ
395 ETFs have low correlation with AAXJ (below 0.3), 72 of which are negatively correlated. The least correlated is United States Oil Fund LP (USO) (Oil & Gas) with a 1Y correlation of -0.31, down from 0.08 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| United States Oil Fund LP | -0.31 | -0.00 | 0.08 | 66 | Oil & Gas | AAXJ vs USO | |
| Defiance Oil Enhanced Options Income ETF | -0.29 | — | — | 56 | Derivative Income | AAXJ vs USOY | |
| United States Brent Oil Fund LP | -0.29 | 0.01 | 0.08 | 65 | Oil & Gas | AAXJ vs BNO | |
| Invesco DB Energy Fund | -0.29 | 0.00 | 0.10 | 71 | Oil & Gas | AAXJ vs DBE | |
| ProShares UltraShort Yen | -0.28 | -0.18 | -0.15 | 61 | Leveraged Currency | AAXJ vs YCS |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from AAXJ, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to AAXJ and solid risk/return profiles. The least correlated is RenaissanceRe Holdings Ltd. (RNR) (Financial Services) with a 1Y correlation of -0.12, down from 0.11 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| RenaissanceRe Holdings Ltd. | -0.12 | 0.02 | 0.11 | 58 | Financial Services | |
| TC Energy Corporation | 0.05 | 0.23 | 0.30 | 87 | Energy | |
| Archer-Daniels-Midland Company | 0.05 | 0.16 | 0.19 | 94 | Consumer Defensive | |
| Canadian National Railway Company | 0.26 | 0.36 | 0.41 | 59 | Industrials | |
| Brookfield Renewable Partners L.P. | 0.35 | 0.38 | 0.36 | 85 | Utilities |
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