Looking to balance out your exposure to ASX? The ETFs below have the lowest correlation with ASX — they tend to move on their own, which can help reduce risk when ASX drops. The stock ideas table highlights individual companies that behave independently from ASX.
Best Diversifiers for ASX
1 ETFs have low correlation with ASX (below 0.3), 0 of which are negatively correlated. The least correlated is iShares MSCI Spain ETF (EWP) (Europe Equities) with a 1Y correlation of 0.25, down from 0.37 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares MSCI Spain ETF | 0.25 | 0.31 | 0.37 | 71 | Europe Equities | ASX vs EWP | |
| Vanguard S&P 500 ETF | 0.51 | 0.59 | 0.59 | 59 | S&P 500 | ASX vs VOO | |
| iShares MSCI South Korea ETF | 0.56 | 0.56 | 0.58 | 92 | Asia Pacific Equities | ASX vs EWY | |
| Invesco QQQ ETF | 0.60 | 0.65 | 0.65 | 59 | Nasdaq-100 | ASX vs QQQ | |
| Invesco NASDAQ 100 ETF | 0.60 | 0.65 | 0.64 | 60 | Nasdaq-100 | ASX vs QQQM |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from ASX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to ASX and solid risk/return profiles. The least correlated is Unum Group (UNM) (Financial Services) with a 1Y correlation of -0.17, down from 0.17 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Unum Group | -0.17 | 0.04 | 0.17 | 62 | Financial Services | |
| Plains All American Pipeline, L.P. | -0.12 | 0.12 | 0.19 | 80 | Energy | |
| EOG Resources, Inc. | -0.07 | 0.06 | 0.14 | 57 | Energy | |
| AbbVie Inc. | -0.04 | 0.01 | 0.04 | 75 | Healthcare | |
| BP p.l.c. | -0.04 | 0.10 | 0.19 | 77 | Energy |
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