Looking to diversify beyond BABX? The ETFs below have the lowest correlation with BABX — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from BABX.
Best Diversifiers for BABX
1021 ETFs have low correlation with BABX (below 0.3), 59 of which are negatively correlated. The least correlated is iShares iBonds Oct 2027 Term TIPS ETF (IBID) (Inflation-Protected Bonds) with a 1Y correlation of -0.14, down from -0.00 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares iBonds Oct 2027 Term TIPS ETF | -0.14 | -0.00 | -0.00 | 95 | Inflation-Protected Bonds | BABX vs IBID | |
| PIMCO 1-5 Year US TIPS Index ETF | -0.14 | 0.01 | — | 58 | Inflation-Protected Bonds | BABX vs STPZ | |
| WisdomTree Floating Rate Treasury Fund | -0.11 | -0.01 | -0.02 | 100 | Government Bonds, Ultrashort Bond | BABX vs USFR | |
| iShares Diversified Commodity Swap UCITS ETF | -0.11 | -0.04 | -0.05 | 77 | Commodities | BABX vs ISCMF | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.11 | -0.05 | -0.02 | 100 | Government Bonds, Ultrashort Bond | BABX vs BIL |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from BABX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to BABX and solid risk/return profiles. The least correlated is Broadcom Inc. (AVGO) (Technology) with a 1Y correlation of 0.20, roughly unchanged from 0.20 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Broadcom Inc. | 0.20 | 0.20 | — | 75 | Technology | |
| Rigetti Computing Inc | 0.21 | 0.22 | 0.22 | 68 | Technology | |
| Amazon.com, Inc | 0.25 | 0.25 | — | 52 | Consumer Cyclical | |
| Arm Holdings plc American Depositary Shares | 0.29 | — | — | 90 | Technology | |
| NVIDIA Corporation | 0.30 | 0.24 | 0.25 | 76 | Technology |
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