Looking to balance out your exposure to CU.TO? The ETFs below have the lowest correlation with CU.TO — they tend to move on their own, which can help reduce risk when CU.TO drops. The stock ideas table highlights individual companies that behave independently from CU.TO.
Best Diversifiers for CU.TO
2 ETFs have low correlation with CU.TO (below 0.3), 1 of which are negatively correlated. The least correlated is Hamilton Enhanced Canadian Covered Call ETF (HDIV.TO) (Derivative Income) with a 1Y correlation of -0.02, down from 0.24 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Hamilton Enhanced Canadian Covered Call ETF | -0.02 | 0.24 | — | 92 | Derivative Income | CU.TO vs HDIV.TO | |
| iShares S&P/TSX Composite High Dividend Index ETF | 0.25 | 0.44 | 0.39 | 98 | Canada Equities | CU.TO vs XEI.TO | |
| BMO Covered Call Utilities ETF | 0.51 | 0.62 | 0.61 | 58 | Utilities Equities, Derivative Income | CU.TO vs ZWU.TO |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from CU.TO, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to CU.TO and solid risk/return profiles. The least correlated is National Bank of Canada (NA.TO) (Financial Services) with a 1Y correlation of -0.13, down from 0.16 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| National Bank of Canada | -0.13 | 0.17 | 0.16 | 95 | Financial Services | |
| Manulife Financial Corporation | -0.11 | 0.13 | 0.12 | 74 | Financial Services | |
| Royal Bank of Canada | -0.10 | 0.23 | 0.19 | 97 | Financial Services | |
| Canadian Imperial Bank of Commerce | -0.10 | 0.20 | 0.18 | 96 | Financial Services | |
| Capital Power Corporation | -0.01 | 0.25 | 0.34 | 68 | Utilities |
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