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
58 ETFs have low correlation with CAT (below 0.3), 16 of which are negatively correlated. The least correlated is WisdomTree Floating Rate Treasury Fund (USFR) (Government Bonds) with a 1Y correlation of -0.26, down from -0.07 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| WisdomTree Floating Rate Treasury Fund | -0.26 | -0.10 | -0.07 | 100 | Government Bonds, Ultrashort Bond | CAT vs USFR | |
| Invesco DB US Dollar Index Bullish Fund | -0.22 | -0.17 | -0.24 | 51 | Currency | CAT vs UUP | |
| Vanguard Ultra-Short Treasury ETF | -0.14 | — | — | 100 | Ultrashort Bond, Government Bonds | CAT vs VGUS | |
| iShares 0-3 Month Treasury Bond ETF | -0.14 | -0.08 | -0.05 | 100 | Ultrashort Bond | CAT vs SGOV | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.12 | -0.09 | -0.04 | 100 | Government Bonds, Ultrashort Bond | CAT vs BIL |
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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 0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cboe Global Markets, Inc. | -0.21 | -0.14 | 0.01 | 62 | Financial Services | |
| The Coca-Cola Company | -0.19 | -0.03 | 0.11 | 83 | Consumer Defensive | |
| Waste Management, Inc. | -0.17 | 0.01 | 0.13 | 53 | Industrials | |
| Consolidated Edison, Inc. | -0.16 | -0.04 | 0.07 | 70 | Utilities | |
| Cheniere Energy, Inc. | -0.14 | 0.10 | 0.23 | 58 | Energy |
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