Looking to balance out your exposure to CCD? The ETFs below have the lowest correlation with CCD — they tend to move on their own, which can help reduce risk when CCD drops. The stock ideas table highlights individual companies that behave independently from CCD.
Best Diversifiers for CCD
4 ETFs have low correlation with CCD (below 0.3), 2 of which are negatively correlated. The least correlated is iShares 0-3 Month Treasury Bond ETF (SGOV) (Ultrashort Bond) with a 1Y correlation of -0.10, roughly unchanged from -0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-3 Month Treasury Bond ETF | -0.10 | -0.03 | -0.03 | 100 | Ultrashort Bond | CCD vs SGOV | |
| Global X MLP & Energy Infrastructure ETF | -0.09 | 0.19 | 0.30 | 72 | MLPs | CCD vs MLPX | |
| Franklin International Low Volatility High Dividen... | 0.22 | 0.33 | 0.37 | 95 | Volatility Hedged Equity, Dividend | CCD vs LVHI | |
| VanEck AA-BB CLO ETF | 0.26 | — | — | 80 | CLO | CCD vs CLOB | |
| WisdomTree Japan Opportunities ETF | 0.40 | 0.33 | 0.34 | 93 | Japan Equities, Asia Pacific Equities | CCD vs OPPJ |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from CCD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to CCD and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.27, down from 0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.27 | -0.10 | 0.02 | 81 | Consumer Defensive | |
| Verizon Communications Inc. | -0.19 | -0.07 | 0.02 | 57 | Communication Services | |
| Plains All American Pipeline, L.P. | -0.16 | 0.12 | 0.23 | 86 | Energy | |
| Sabra Health Care REIT, Inc. | -0.11 | 0.06 | 0.17 | 64 | Real Estate | |
| LTC Properties, Inc. | -0.10 | 0.10 | 0.15 | 74 | Real Estate |
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