Looking to balance out your exposure to HMC? The ETFs below have historically moved differently from HMC, 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 HMC
7 ETFs have low correlation with HMC (below 0.3), 1 of which are negatively correlated. The least correlated is State Street Energy Select Sector SPDR ETF (XLE) (Energy Equities) with a 1Y correlation of -0.00, down from 0.23 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street Energy Select Sector SPDR ETF | -0.00 | 0.16 | 0.23 | 75 | Energy Equities | HMC vs XLE | |
| PIMCO Enhanced Short Maturity Active ETF | 0.03 | 0.08 | 0.10 | 100 | Ultrashort Bond | HMC vs MINT | |
| Direxion Daily Semiconductor Bull 3X ETF | 0.27 | 0.32 | 0.39 | 91 | Leveraged Equities, Semiconductors | HMC vs SOXL | |
| iShares Semiconductor ETF | 0.27 | 0.32 | 0.40 | 90 | Semiconductors, Technology Equities | HMC vs SOXX | |
| Invesco Semiconductors ETF | 0.27 | 0.33 | 0.40 | 90 | Semiconductors, Technology Equities | HMC vs PSI |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for HMC, 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 VeriSign, Inc. (VRSN) (Technology) with a 1Y correlation of -0.03, down from 0.20 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| VeriSign, Inc. | -0.03 | 0.09 | 0.20 | 58 | Technology | |
| Verizon Communications Inc. | -0.01 | 0.04 | 0.11 | 66 | Communication Services | |
| Exxon Mobil Corporation | 0.00 | 0.14 | 0.20 | 85 | Energy | |
| CrowdStrike Holdings, Inc. | 0.05 | 0.18 | 0.22 | 83 | Technology | |
| NVIDIA Corporation | 0.08 | 0.19 | 0.30 | 61 | Technology |
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