Looking to balance out your exposure to CAT? The ETFs below have historically moved differently from CAT, 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 CAT
71 ETFs have low correlation with CAT (below 0.3), 19 of which are negatively correlated. The least correlated is WisdomTree Floating Rate Treasury Fund (USFR) (Government Bonds) with a 1Y correlation of -0.23, down from -0.07 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| WisdomTree Floating Rate Treasury Fund | -0.23 | -0.10 | -0.07 | 100 | Government Bonds, Ultrashort Bond | CAT vs USFR | |
| Vanguard Ultra-Short Treasury ETF | -0.14 | — | — | 100 | Ultrashort Bond, Government Bonds | CAT vs VGUS | |
| United States Oil Fund LP | -0.13 | 0.05 | 0.19 | 55 | Oil & Gas | CAT vs USO | |
| iShares 0-3 Month Treasury Bond ETF | -0.13 | -0.07 | -0.05 | 100 | Ultrashort Bond | CAT vs SGOV | |
| Vanguard Short-Term Inflation-Protected Securities... | -0.10 | 0.00 | 0.07 | 92 | Inflation-Protected Bonds | CAT vs VTIP |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for CAT, 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 Cboe Global Markets, Inc. (CBOE) (Financial Services) with a 1Y correlation of -0.28, down from -0.01 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cboe Global Markets, Inc. | -0.28 | -0.16 | -0.01 | 69 | Financial Services | |
| The Coca-Cola Company | -0.23 | -0.04 | 0.10 | 90 | Consumer Defensive | |
| Colgate-Palmolive Company | -0.18 | -0.05 | 0.04 | 59 | Consumer Defensive | |
| VeriSign, Inc. | -0.18 | 0.06 | 0.15 | 53 | Technology | |
| Consolidated Edison, Inc. | -0.17 | -0.03 | 0.06 | 59 | Utilities |
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