Looking to balance out your exposure to CHMI? The ETFs below have the lowest correlation with CHMI — they tend to move on their own, which can help reduce risk when CHMI drops. The stock ideas table highlights individual companies that behave independently from CHMI.
Best Diversifiers for CHMI
7 ETFs have low correlation with CHMI (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Information Technology ETF (VGT) (Technology Equities) with a 1Y correlation of 0.20, down from 0.33 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Information Technology ETF | 0.20 | 0.27 | 0.33 | 76 | Technology Equities | CHMI vs VGT | |
| Invesco NASDAQ 100 ETF | 0.22 | 0.28 | 0.34 | 74 | Nasdaq-100 | CHMI vs QQQM | |
| Global X NASDAQ 100 Covered Call ETF | 0.24 | 0.25 | 0.32 | 88 | Nasdaq-100, Derivative Income | CHMI vs QYLD | |
| Invesco S&P 500 Momentum ETF | 0.24 | 0.29 | 0.35 | 75 | Momentum, S&P 500 | CHMI vs SPMO | |
| Schwab U.S. Dividend Equity ETF | 0.27 | 0.39 | 0.42 | 80 | Dividend | CHMI vs SCHD |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from CHMI, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to CHMI and solid risk/return profiles. The least correlated is ZIM Integrated Shipping Services Ltd. (ZIM) (Industrials) with a 1Y correlation of 0.15, roughly unchanged from 0.18 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| ZIM Integrated Shipping Services Ltd. | 0.15 | 0.14 | 0.18 | 72 | Industrials | |
| Ellington Financial Inc. | 0.29 | 0.45 | 0.51 | 69 | Real Estate | |
| Dynex Capital, Inc. | 0.30 | 0.48 | 0.54 | 74 | Real Estate | |
| Apollo Commercial Real Estate Finance, Inc. | 0.30 | 0.43 | 0.52 | 73 | Real Estate | |
| ARMOUR Residential REIT, Inc. | 0.33 | 0.49 | 0.54 | 67 | Real Estate |
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