Looking to balance out your exposure to ALT? The ETFs below have the lowest correlation with ALT — they tend to move on their own, which can help reduce risk when ALT drops. The stock ideas table highlights individual companies that behave independently from ALT.
Best Diversifiers for ALT
3 ETFs have low correlation with ALT (below 0.3), 0 of which are negatively correlated. The least correlated is State Street Technology Select Sector SPDR ETF (XLK) (Technology Equities) with a 1Y correlation of 0.28, roughly unchanged from 0.29 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street Technology Select Sector SPDR ETF | 0.28 | 0.31 | 0.29 | 83 | Technology Equities | ALT vs XLK | |
| Invesco QQQ ETF | 0.28 | 0.32 | 0.30 | 73 | Nasdaq-100 | ALT vs QQQ | |
| ProShares UltraPro QQQ | 0.28 | 0.32 | 0.30 | 71 | Leveraged Equities | ALT vs TQQQ | |
| Fidelity High Dividend ETF | 0.33 | 0.34 | 0.30 | 64 | Large Cap Blend Equities, Dividend | ALT vs FDVV | |
| Vanguard S&P 500 ETF | 0.33 | 0.36 | 0.32 | 70 | S&P 500 | ALT vs VOO |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from ALT, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to ALT and solid risk/return profiles. The least correlated is The Coca-Cola Company (KO) (Consumer Defensive) with a 1Y correlation of 0.04, roughly unchanged from 0.04 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| The Coca-Cola Company | 0.04 | 0.04 | 0.04 | 66 | Consumer Defensive | |
| NVIDIA Corporation | 0.13 | 0.21 | 0.24 | 78 | Technology | |
| SoFi Technologies, Inc. | 0.15 | 0.30 | 0.30 | 51 | Financial Services | |
| Amazon.com, Inc | 0.18 | 0.24 | 0.25 | 60 | Consumer Cyclical | |
| Advanced Micro Devices, Inc. | 0.18 | 0.22 | 0.22 | 98 | Technology |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements ALT
Add ALT to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with ALT