Looking to balance out your exposure to AL? The ETFs below have the lowest correlation with AL — they tend to move on their own, which can help reduce risk when AL drops. The stock ideas table highlights individual companies that behave independently from AL.
Best Diversifiers for AL
2 ETFs have low correlation with AL (below 0.3), 0 of which are negatively correlated. The least correlated is State Street SPDR S&P 500 ETF (SPY) (S&P 500) with a 1Y correlation of 0.25, down from 0.57 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street SPDR S&P 500 ETF | 0.25 | 0.47 | 0.57 | 70 | S&P 500 | AL vs SPY | |
| Vanguard S&P 500 ETF | 0.25 | 0.47 | 0.57 | 70 | S&P 500 | AL vs VOO |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from AL, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to AL and solid risk/return profiles. The least correlated is Wheaton Precious Metals Corp. (WPM) (Basic Materials) with a 1Y correlation of 0.13, roughly unchanged from 0.21 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Wheaton Precious Metals Corp. | 0.13 | 0.18 | 0.21 | 64 | Basic Materials | |
| The Hershey Company | 0.15 | 0.08 | 0.09 | 55 | Consumer Defensive | |
| Fortress Transportation and Infrastructure Investo... | 0.22 | 0.37 | 0.44 | 82 | Industrials | |
| Willis Lease Finance Corporation | 0.27 | 0.34 | 0.32 | 57 | Industrials | |
| AerCap Holdings N.V. | 0.34 | 0.60 | 0.72 | 61 | Industrials |
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