Looking to diversify beyond DFAR? The ETFs below have historically moved differently from DFAR, 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 DFAR
1338 ETFs have low correlation with DFAR (below 0.3), 111 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.35, roughly unchanged from -0.26 over 3 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.35 | -0.26 | — | 59 | Leveraged Currency | DFAR vs YCS | |
| FolioBeyond Alternative Income and Interest Rate H... | -0.26 | -0.18 | -0.15 | 51 | Nontraditional Bonds | DFAR vs RISR | |
| Invesco DB Energy Fund | -0.18 | -0.12 | — | 66 | Oil & Gas | DFAR vs DBE | |
| iShares S&P GSCI Commodity-Indexed Trust | -0.16 | -0.07 | — | 61 | Commodities | DFAR vs GSG | |
| Invesco DB Oil Fund | -0.16 | -0.10 | — | 51 | Oil & Gas | DFAR vs DBO |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for DFAR, 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 CareTrust REIT, Inc. (CTRE) (Real Estate) with a 1Y correlation of 0.47, roughly unchanged from 0.49 over 3 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| CareTrust REIT, Inc. | 0.47 | 0.49 | — | 81 | Real Estate | |
| Host Hotels & Resorts, Inc. | 0.50 | 0.53 | 0.54 | 97 | Real Estate | |
| Welltower Inc. | 0.60 | 0.65 | — | 88 | Real Estate | |
| Cohen & Steers Quality Income Realty Fund, Inc. | 0.80 | 0.84 | — | 66 | Financial Services |
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