Looking to balance out your exposure to AR? The ETFs below have the lowest correlation with AR — they tend to move on their own, which can help reduce risk when AR drops. The stock ideas table highlights individual companies that behave independently from AR.
Best Diversifiers for AR
4 ETFs have low correlation with AR (below 0.3), 2 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 -0.04, down from 0.30 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street SPDR S&P 500 ETF | -0.04 | 0.18 | 0.30 | 70 | S&P 500 | AR vs SPY | |
| Invesco S&P 500 Momentum ETF | -0.01 | 0.20 | 0.31 | 75 | Momentum, S&P 500 | AR vs SPMO | |
| Janus Henderson AAA CLO ETF | 0.00 | 0.05 | 0.03 | 98 | CLO | AR vs JAAA | |
| Schwab U.S. Dividend Equity ETF | 0.12 | 0.26 | 0.37 | 80 | Dividend | AR vs SCHD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from AR, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to AR and solid risk/return profiles. The least correlated is Walmart Inc. (WMT) (Consumer Defensive) with a 1Y correlation of -0.04, down from 0.08 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Walmart Inc. | -0.04 | 0.01 | 0.08 | 63 | Consumer Defensive | |
| Taiwan Semiconductor Manufacturing Company Limited | -0.03 | 0.14 | 0.18 | 95 | Technology | |
| QUALCOMM Incorporated | -0.03 | 0.14 | 0.22 | 79 | Technology | |
| Sibanye Stillwater Limited | -0.02 | 0.14 | 0.21 | 72 | Basic Materials | |
| RenaissanceRe Holdings Ltd. | -0.02 | 0.04 | 0.12 | 58 | Financial Services |
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