Looking to diversify beyond CDX? The ETFs below have the lowest correlation with CDX — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from CDX.
Best Diversifiers for CDX
1124 ETFs have low correlation with CDX (below 0.3), 85 of which are negatively correlated. The least correlated is Invesco DB US Dollar Index Bullish Fund (UUP) (Currency) with a 1Y correlation of -0.33, down from -0.22 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB US Dollar Index Bullish Fund | -0.33 | -0.22 | — | 51 | Currency | CDX vs UUP | |
| ProShares UltraShort Yen | -0.31 | -0.19 | — | 72 | Leveraged Currency | CDX vs YCS | |
| Invesco DB Energy Fund | -0.30 | -0.11 | — | 53 | Oil & Gas | CDX vs DBE | |
| DoubleLine Commodity Strategy ETF | -0.27 | — | — | 51 | Commodities | CDX vs DCMT | |
| iShares S&P GSCI Commodity-Indexed Trust | -0.26 | -0.08 | -0.00 | 51 | Commodities | CDX vs GSG |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from CDX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to CDX and solid risk/return profiles. The least correlated is Verizon Communications Inc. (VZ) (Communication Services) with a 1Y correlation of -0.02, roughly unchanged from 0.07 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Verizon Communications Inc. | -0.02 | -0.04 | 0.07 | 57 | Communication Services | |
| Hercules Capital, Inc. | -0.00 | 0.02 | — | 68 | ||
| Easterly Government Properties, Inc. | 0.10 | 0.13 | 0.21 | 68 | Real Estate | |
| BlackRock Science and Technology Term Trust | 0.13 | 0.17 | — | 93 | Financial Services | |
| Realty Income Corporation | 0.14 | 0.17 | — | 74 | Real Estate |
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