Looking to balance out your exposure to CTO? The ETFs below have the lowest correlation with CTO — they tend to move on their own, which can help reduce risk when CTO drops. The stock ideas table highlights individual companies that behave independently from CTO.
Best Diversifiers for CTO
4 ETFs have low correlation with CTO (below 0.3), 0 of which are negatively correlated. The least correlated is Global X NASDAQ 100 Covered Call ETF (QYLD) (Nasdaq-100) with a 1Y correlation of 0.03, down from 0.26 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Global X NASDAQ 100 Covered Call ETF | 0.03 | 0.15 | 0.26 | 88 | Nasdaq-100, Derivative Income | CTO vs QYLD | |
| Vanguard S&P 500 ETF | 0.15 | 0.27 | 0.37 | 70 | S&P 500 | CTO vs VOO | |
| State Street SPDR S&P 500 ETF | 0.15 | 0.27 | 0.37 | 70 | S&P 500 | CTO vs SPY | |
| Pacer Global Cash Cows Dividend ETF | 0.21 | 0.34 | 0.39 | 79 | Large Cap Value Equities, Dividend | CTO vs GCOW |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from CTO, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to CTO and solid risk/return profiles. The least correlated is Chevron Corporation (CVX) (Energy) with a 1Y correlation of -0.05, down from 0.20 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Chevron Corporation | -0.05 | 0.11 | 0.20 | 83 | Energy | |
| AGNC Investment Corp. | 0.28 | 0.41 | 0.41 | 76 | Real Estate | |
| Medical Properties Trust, Inc | 0.28 | 0.37 | 0.40 | 56 | Real Estate |
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