Looking to balance out your exposure to BIP? The ETFs below have the lowest correlation with BIP — they tend to move on their own, which can help reduce risk when BIP drops. The stock ideas table highlights individual companies that behave independently from BIP.
Best Diversifiers for BIP
3 ETFs have low correlation with BIP (below 0.3), 1 of which are negatively correlated. The least correlated is iShares 0-3 Month Treasury Bond ETF (SGOV) (Ultrashort Bond) with a 1Y correlation of -0.05, roughly unchanged from -0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-3 Month Treasury Bond ETF | -0.05 | 0.03 | -0.02 | 100 | Ultrashort Bond | BIP vs SGOV | |
| Fidelity MSCI Energy Index ETF | 0.06 | 0.23 | 0.29 | 71 | Energy Equities | BIP vs FENY | |
| ProShares Ultra QQQ | 0.29 | 0.35 | 0.38 | 70 | Leveraged Equities | BIP vs QLD | |
| State Street SPDR S&P 500 ETF | 0.37 | 0.46 | 0.48 | 74 | S&P 500 | BIP vs SPY | |
| Vanguard FTSE Developed Markets ETF | 0.42 | 0.54 | 0.54 | 61 | Foreign Large Cap Equities | BIP vs VEA |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from BIP, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to BIP and solid risk/return profiles. The least correlated is Chevron Corporation (CVX) (Energy) with a 1Y correlation of -0.01, down from 0.24 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Chevron Corporation | -0.01 | 0.17 | 0.24 | 84 | Energy | |
| Canadian Utilities Limited | 0.01 | 0.25 | 0.27 | 91 | Utilities | |
| Walmart Inc. | 0.02 | 0.12 | 0.18 | 66 | Consumer Defensive | |
| Portland General Electric Company | 0.03 | 0.29 | 0.30 | 77 | Utilities | |
| Exxon Mobil Corporation | 0.03 | 0.17 | 0.23 | 86 | Energy |
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