Looking to balance out your exposure to DD? The ETFs below have the lowest correlation with DD — they tend to move on their own, which can help reduce risk when DD drops. The stock ideas table highlights individual companies that behave independently from DD.
Best Diversifiers for DD
0 ETFs have low correlation with DD (below 0.3), 0 of which are negatively correlated. The least correlated is Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) (Foreign Large Cap Equities) with a 1Y correlation of 0.39, down from 0.55 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF | 0.39 | 0.45 | 0.55 | 53 | Foreign Large Cap Equities, Dividend | DD vs HDEF | |
| Freedom 100 Emerging Markets ETF | 0.46 | 0.46 | 0.54 | 89 | Emerging Markets Diversified | DD vs FRDM | |
| Vanguard S&P 500 ETF | 0.52 | 0.54 | 0.63 | 67 | S&P 500 | DD vs VOO | |
| Schwab U.S. Large-Cap ETF | 0.53 | 0.55 | 0.63 | 63 | Large Cap Blend Equities | DD vs SCHX | |
| iShares Core S&P Total U.S. Stock Market ETF | 0.54 | 0.57 | 0.64 | 66 | Large Cap Blend Equities | DD vs ITOT |
To view more results, upgrade your current subscription plan.
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from DD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to DD and solid risk/return profiles. The least correlated is Consolidated Edison, Inc. (ED) (Utilities) with a 1Y correlation of -0.08, down from 0.12 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Consolidated Edison, Inc. | -0.08 | 0.04 | 0.12 | 69 | Utilities | |
| Cboe Global Markets, Inc. | -0.07 | -0.11 | 0.06 | 61 | Financial Services | |
| The Coca-Cola Company | -0.04 | 0.11 | 0.21 | 82 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.02 | 0.19 | 0.30 | 76 | Energy | |
| EOG Resources, Inc. | -0.02 | 0.17 | 0.29 | 63 | Energy |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements DD
Add DD to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with DD