Looking to diversify beyond DFAT? The ETFs below have historically moved differently from DFAT, 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 DFAT
390 ETFs have low correlation with DFAT (below 0.3), 56 of which are negatively correlated. The least correlated is Alpha Architect Tail Risk ETF (CAOS) (Options Trading) with a 1Y correlation of -0.30, down from -0.11 over 3 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Alpha Architect Tail Risk ETF | -0.30 | -0.11 | — | 56 | Options Trading | DFAT vs CAOS | |
| T-REX 2X Inverse MSTR Daily Target ETF | -0.29 | — | — | 61 | Inverse Equities, Leveraged Equities | DFAT vs MSTZ | |
| Defiance Daily Target 2X Short MSTR ETF | -0.29 | — | — | 52 | Inverse Equities | DFAT vs SMST | |
| Proshares Ultrashort Bitcoin ETF | -0.29 | — | — | 55 | Cryptocurrency, Leveraged Cryptocurrency | DFAT vs SBIT | |
| ProShares Short Bitcoin ETF | -0.28 | -0.31 | — | 61 | Cryptocurrency | DFAT vs BITI |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for DFAT, 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 Broadcom Inc. (AVGO) (Technology) with a 1Y correlation of 0.17, down from 0.42 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Broadcom Inc. | 0.17 | 0.29 | 0.42 | 67 | Technology | |
| Micron Technology, Inc. | 0.23 | 0.34 | 0.43 | 99 | Technology | |
| Coherent Corp. | 0.27 | 0.41 | 0.50 | 87 | Technology | |
| Taiwan Semiconductor Manufacturing Company Limited | 0.32 | 0.36 | 0.44 | 87 | Technology |
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