Looking to diversify beyond FRI? The ETFs below have historically moved differently from FRI, 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 FRI
1264 ETFs have low correlation with FRI (below 0.3), 82 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.31, down from -0.16 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.31 | -0.23 | -0.16 | 56 | Leveraged Currency | FRI vs YCS | |
| Invesco DB Energy Fund | -0.20 | -0.12 | 0.02 | 72 | Oil & Gas | FRI vs DBE | |
| United States Brent Oil Fund LP | -0.19 | -0.11 | 0.01 | 52 | Oil & Gas | FRI vs BNO | |
| United States Oil Fund LP | -0.18 | -0.11 | 0.01 | 55 | Oil & Gas | FRI vs USO | |
| iShares S&P GSCI Commodity-Indexed Trust | -0.17 | -0.07 | 0.05 | 67 | Commodities | FRI vs GSG |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for FRI, 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 Digital Realty Trust, Inc. (DLR) (Real Estate) with a 1Y correlation of 0.45, down from 0.67 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Digital Realty Trust, Inc. | 0.45 | 0.57 | 0.67 | 56 | Real Estate | |
| Welltower Inc. | 0.64 | 0.66 | 0.69 | 89 | Real Estate | |
| W. P. Carey Inc. | 0.68 | 0.70 | 0.74 | 79 | Real Estate |
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