Looking to balance out your exposure to AD? The ETFs below have the lowest correlation with AD — they tend to move on their own, which can help reduce risk when AD drops. The stock ideas table highlights individual companies that behave independently from AD.
Best Diversifiers for AD
8 ETFs have low correlation with AD (below 0.3), 0 of which are negatively correlated. The least correlated is Invesco S&P 500 Momentum ETF (SPMO) (Momentum) with a 1Y correlation of 0.16, roughly unchanged from 0.24 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco S&P 500 Momentum ETF | 0.16 | 0.20 | 0.24 | 80 | Momentum, S&P 500 | AD vs SPMO | |
| First Trust Morningstar Dividend Leaders Index Fun... | 0.16 | 0.27 | 0.34 | 79 | Large Cap Value Equities, Dividend | AD vs FDL | |
| Invesco QQQ ETF | 0.17 | 0.21 | 0.20 | 64 | Nasdaq-100 | AD vs QQQ | |
| iShares Core High Dividend ETF | 0.17 | 0.23 | 0.30 | 81 | Dividend, Large Cap Value Equities | AD vs HDV | |
| Vanguard S&P 500 ETF | 0.20 | 0.25 | 0.27 | 63 | S&P 500 | AD vs VOO |
To view more results, upgrade your current subscription plan.
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from AD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to AD and solid risk/return profiles. The least correlated is Plains All American Pipeline, L.P. (PAA) (Energy) with a 1Y correlation of 0.02, down from 0.25 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Plains All American Pipeline, L.P. | 0.02 | 0.21 | 0.25 | 81 | Energy | |
| Enterprise Products Partners L.P. | 0.05 | 0.18 | 0.21 | 85 | Energy | |
| Altria Group, Inc. | 0.08 | 0.13 | 0.18 | 78 | Consumer Defensive | |
| AbbVie Inc. | 0.13 | 0.06 | 0.10 | 78 | Healthcare | |
| Ventas, Inc. | 0.13 | 0.23 | 0.27 | 89 | Real Estate |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements AD
Add AD to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with AD