Looking to balance out your exposure to CAT? The ETFs below have the lowest correlation with CAT — they tend to move on their own, which can help reduce risk when CAT drops. The stock ideas table highlights individual companies that behave independently from CAT.
Best Diversifiers for CAT
33 ETFs have low correlation with CAT (below 0.3), 8 of which are negatively correlated. The least correlated is WisdomTree Floating Rate Treasury Fund (USFR) (Government Bonds) with a 1Y correlation of -0.25, down from -0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| WisdomTree Floating Rate Treasury Fund | -0.25 | -0.09 | -0.06 | 100 | Government Bonds, Ultrashort Bond | CAT vs USFR | |
| iShares 0-3 Month Treasury Bond ETF | -0.12 | -0.07 | -0.05 | 100 | Ultrashort Bond | CAT vs SGOV | |
| iShares 0-5 Year TIPS Bond ETF | -0.07 | 0.03 | 0.09 | 85 | Inflation-Protected Bonds | CAT vs STIP | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.07 | -0.08 | -0.03 | 100 | Government Bonds, Ultrashort Bond | CAT vs BIL | |
| Alpha Architect 1-3 Month Box ETF | -0.07 | -0.04 | — | 100 | Ultrashort Bond | CAT vs BOXX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from CAT, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to CAT and solid risk/return profiles. The least correlated is Cboe Global Markets, Inc. (CBOE) (Financial Services) with a 1Y correlation of -0.21, down from 0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cboe Global Markets, Inc. | -0.21 | -0.13 | 0.02 | 55 | Financial Services | |
| The Coca-Cola Company | -0.15 | -0.02 | 0.13 | 74 | Consumer Defensive | |
| Altria Group, Inc. | -0.12 | 0.05 | 0.19 | 72 | Consumer Defensive | |
| Consolidated Edison, Inc. | -0.12 | -0.02 | 0.07 | 61 | Utilities | |
| Murphy USA Inc. | -0.09 | 0.07 | 0.17 | 66 | Consumer Cyclical |
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Build a portfolio that complements CAT
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