Looking to diversify beyond CTA? The ETFs below have historically moved differently from CTA, 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 CTA
2164 ETFs have low correlation with CTA (below 0.3), 1968 of which are negatively correlated.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| F/M 2-Year Investment Grade Corporate Bond ETF | -0.35 | — | — | 94 | Short-Term Bond, Investment Grade Bonds | CTA vs ZTWO | |
| iShares Core 1-5 Year USD Bond ETF | -0.34 | -0.35 | — | 79 | Short-Term Bond | CTA vs ISTB | |
| WisdomTree U.S. High Yield Corporate Bond Fund | -0.34 | -0.34 | — | 76 | Short-Term Bond | CTA vs QSIG | |
| iShares High Yield Muni Active ETF | -0.33 | — | — | 77 | High Yield Muni | CTA vs HIMU | |
| JPMorgan Income ETF | -0.33 | -0.32 | — | 95 | Multisector Bonds | CTA vs JPIE |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for CTA, 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 Annaly Capital Management, Inc. (NLY) (Real Estate) with a 1Y correlation of -0.30, roughly unchanged from -0.21 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Annaly Capital Management, Inc. | -0.30 | -0.21 | -0.21 | 80 | Real Estate | |
| AGNC Investment Corp. | -0.23 | -0.18 | -0.19 | 79 | Real Estate | |
| The TJX Companies, Inc. | -0.20 | -0.11 | -0.12 | 83 | Consumer Cyclical | |
| Monster Beverage Corporation | -0.20 | -0.11 | -0.13 | 94 | Consumer Defensive | |
| Eli Lilly and Company | -0.20 | -0.09 | — | 83 | Healthcare |
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