Looking to balance out your exposure to HMC? The ETFs below have the lowest correlation with HMC — they tend to move on their own, which can help reduce risk when HMC drops. The stock ideas table highlights individual companies that behave independently from HMC.
Best Diversifiers for HMC
1 ETFs have low correlation with HMC (below 0.3), 0 of which are negatively correlated. The least correlated is PIMCO Enhanced Short Maturity Active ETF (MINT) (Ultrashort Bond) with a 1Y correlation of 0.02, roughly unchanged from 0.10 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| PIMCO Enhanced Short Maturity Active ETF | 0.02 | 0.07 | 0.10 | 100 | Ultrashort Bond | HMC vs MINT | |
| iShares Semiconductor ETF | 0.32 | 0.34 | 0.42 | 95 | Semiconductors, Technology Equities | HMC vs SOXX | |
| Direxion Daily Semiconductor Bull 3X ETF | 0.32 | 0.34 | 0.41 | 96 | Leveraged Equities, Semiconductors | HMC vs SOXL | |
| Convergence Long/Short Equity ETF | 0.32 | 0.33 | — | 96 | Long-Short, Actively Managed | HMC vs CLSE | |
| Invesco Semiconductors ETF | 0.34 | 0.36 | 0.42 | 96 | Semiconductors, Technology Equities | HMC vs PSI |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from HMC, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to HMC and solid risk/return profiles. The least correlated is Verizon Communications Inc. (VZ) (Communication Services) with a 1Y correlation of -0.03, down from 0.11 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Verizon Communications Inc. | -0.03 | 0.05 | 0.11 | 62 | Communication Services | |
| CrowdStrike Holdings, Inc. | 0.03 | 0.18 | 0.22 | 66 | Technology | |
| Exxon Mobil Corporation | 0.07 | 0.16 | 0.22 | 74 | Energy | |
| Progyny, Inc. | 0.10 | 0.16 | 0.23 | 59 | Healthcare | |
| Lockheed Martin Corporation | 0.11 | 0.09 | 0.10 | 52 | Industrials |
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Build a portfolio that complements HMC
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