Looking to diversify beyond CTA? The ETFs below have the lowest correlation with CTA — 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 CTA.
Best Diversifiers for CTA
2015 ETFs have low correlation with CTA (below 0.3), 1796 of which are negatively correlated.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Avantis Credit ETF | -0.34 | — | — | 54 | Global Bonds | CTA vs AVGB | |
| First Trust TCW Unconstrained Plus Bond ETF | -0.34 | -0.33 | — | 54 | Nontraditional Bonds | CTA vs UCON | |
| iShares Yield Optimized Bond ETF | -0.33 | -0.33 | -0.32 | 52 | Intermediate Core-Plus Bond | CTA vs BYLD | |
| F/M 2-Year Investment Grade Corporate Bond ETF | -0.33 | — | — | 93 | Short-Term Bond | CTA vs ZTWO | |
| WisdomTree U.S. High Yield Corporate Bond Fund | -0.31 | -0.35 | — | 75 | Short-Term Bond | CTA vs QSIG |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from CTA, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to CTA and solid risk/return profiles. The least correlated is Annaly Capital Management, Inc. (NLY) (Real Estate) with a 1Y correlation of -0.23, roughly unchanged from -0.20 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Annaly Capital Management, Inc. | -0.23 | -0.20 | -0.20 | 83 | Real Estate | |
| Eli Lilly and Company | -0.20 | -0.09 | -0.06 | 80 | Healthcare | |
| General Electric Company | -0.16 | -0.07 | -0.11 | 80 | Industrials | |
| NNN REIT, Inc. | -0.16 | -0.17 | — | 71 | Real Estate | |
| The Bank of Nova Scotia | -0.15 | -0.12 | -0.17 | 97 | Financial Services |
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