Looking to diversify beyond IBD? The ETFs below have historically moved differently from IBD, 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 IBD
1825 ETFs have low correlation with IBD (below 0.3), 120 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.35, roughly unchanged from -0.37 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.35 | -0.30 | -0.37 | 56 | Leveraged Currency | IBD vs YCS | |
| United States Gasoline Fund LP | -0.29 | -0.10 | -0.05 | 87 | Oil & Gas | IBD vs UGA | |
| United States Brent Oil Fund LP | -0.28 | -0.11 | -0.06 | 52 | Oil & Gas | IBD vs BNO | |
| iShares S&P GSCI Commodity-Indexed Trust | -0.28 | -0.09 | -0.03 | 67 | Commodities | IBD vs GSG | |
| KFA Mount Lucas Index Strategy ETF | -0.28 | -0.21 | -0.33 | 61 | Systematic Trend | IBD vs KMLM |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for IBD, 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 Cohen & Steers Quality Income Realty Fund, Inc. (RQI) (Financial Services) with a 1Y correlation of 0.27, roughly unchanged from 0.29 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cohen & Steers Quality Income Realty Fund, Inc. | 0.27 | 0.28 | 0.29 | 66 | Financial Services |
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