Looking to diversify beyond BAB? The ETFs below have historically moved differently from BAB, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for BAB
1744 ETFs have low correlation with BAB (below 0.3), 115 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.34, roughly unchanged from -0.43 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.34 | -0.41 | -0.43 | 59 | Leveraged Currency | BAB vs YCS | |
| United States Gasoline Fund, LP | -0.33 | -0.18 | -0.11 | 83 | Oil & Gas | BAB vs UGA | |
| Invesco DB Energy Fund | -0.33 | -0.20 | -0.13 | 66 | Oil & Gas | BAB vs DBE | |
| KFA Mount Lucas Index Strategy ETF | -0.33 | -0.27 | -0.35 | 51 | Systematic Trend | BAB vs KMLM | |
| iShares S&P GSCI Commodity-Indexed Trust | -0.33 | -0.16 | -0.10 | 61 | Commodities | BAB vs GSG |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for BAB, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Nuveen Quality Municipal Income Fund (NAD) (Financial Services) with a 1Y correlation of 0.40, roughly unchanged from 0.47 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Nuveen Quality Municipal Income Fund | 0.40 | 0.47 | 0.47 | 76 | Financial Services | |
| Nuveen AMT-Free Municipal Credit Income Fund | 0.43 | 0.48 | 0.46 | 76 | Financial Services |
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