Looking to balance out your exposure to HE? The ETFs below have the lowest correlation with HE — they tend to move on their own, which can help reduce risk when HE drops. The stock ideas table highlights individual companies that behave independently from HE.
Best Diversifiers for HE
3 ETFs have low correlation with HE (below 0.3), 0 of which are negatively correlated. The least correlated is Invesco QQQ ETF (QQQ) (Nasdaq-100) with a 1Y correlation of 0.12, roughly unchanged from 0.14 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco QQQ ETF | 0.12 | 0.06 | 0.14 | 73 | Nasdaq-100 | HE vs QQQ | |
| Vanguard Total World Stock ETF | 0.24 | 0.21 | 0.28 | 67 | Global Equities | HE vs VT | |
| Pacer US Cash Cows 100 ETF | 0.26 | 0.30 | 0.34 | 65 | Mid Cap Value Equities, Dividend | HE vs COWZ |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from HE, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to HE and solid risk/return profiles. The least correlated is ZIM Integrated Shipping Services Ltd. (ZIM) (Industrials) with a 1Y correlation of 0.14, roughly unchanged from 0.11 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| ZIM Integrated Shipping Services Ltd. | 0.14 | 0.12 | 0.11 | 72 | Industrials | |
| Verizon Communications Inc. | 0.20 | 0.20 | 0.29 | 59 | Communication Services |
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