Looking to balance out your exposure to AOD? The ETFs below have the lowest correlation with AOD — they tend to move on their own, which can help reduce risk when AOD drops. The stock ideas table highlights individual companies that behave independently from AOD.
Best Diversifiers for AOD
6 ETFs have low correlation with AOD (below 0.3), 0 of which are negatively correlated. The least correlated is First Trust Global Tactical Commodity Strategy Fund (FTGC) (Commodities) with a 1Y correlation of 0.02, down from 0.24 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| First Trust Global Tactical Commodity Strategy Fun... | 0.02 | 0.17 | 0.24 | 81 | Commodities | AOD vs FTGC | |
| iShares 1-3 Year Treasury Bond ETF | 0.11 | 0.12 | 0.11 | 79 | Government Bonds, Short-Term Bond | AOD vs SHY | |
| Janus Henderson AAA CLO ETF | 0.17 | 0.16 | 0.15 | 98 | CLO | AOD vs JAAA | |
| PGIM Ultra Short Bond ETF | 0.18 | 0.12 | 0.11 | 100 | Ultrashort Bond | AOD vs PULS | |
| PGIM AAA CLO ETF | 0.21 | 0.14 | 0.14 | 99 | CLO | AOD vs PAAA |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from AOD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to AOD and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.13, down from 0.17 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.13 | 0.06 | 0.17 | 69 | Consumer Defensive | |
| Chevron Corporation | -0.08 | 0.12 | 0.24 | 83 | Energy | |
| TotalEnergies SE | -0.07 | 0.14 | 0.19 | 90 | Energy | |
| PepsiCo, Inc. | -0.03 | 0.09 | 0.21 | 56 | Consumer Defensive | |
| Verizon Communications Inc. | -0.01 | 0.09 | 0.18 | 59 | Communication Services |
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