Looking to balance out your exposure to IDCC? The ETFs below have the lowest correlation with IDCC — they tend to move on their own, which can help reduce risk when IDCC drops. The stock ideas table highlights individual companies that behave independently from IDCC.
Best Diversifiers for IDCC
4 ETFs have low correlation with IDCC (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Treasury ETF (VGSH) (Government Bonds) with a 1Y correlation of 0.03, roughly unchanged from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Treasury ETF | 0.03 | 0.04 | 0.06 | 89 | Government Bonds, Short-Term Bond | IDCC vs VGSH | |
| Schwab Short-Term U.S. Treasury ETF | 0.04 | 0.05 | 0.05 | 89 | Government Bonds, Short-Term Bond | IDCC vs SCHO | |
| iShares 1-3 Year Treasury Bond ETF | 0.08 | 0.09 | 0.10 | 87 | Government Bonds, Short-Term Bond | IDCC vs SHY | |
| Vanguard Short-Term Corporate Bond ETF | 0.13 | 0.17 | 0.18 | 80 | Corporate Bonds | IDCC vs VCSH | |
| State Street SPDR S&P 500 ETF | 0.44 | 0.47 | 0.53 | 65 | S&P 500 | IDCC vs SPY |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from IDCC, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to IDCC and solid risk/return profiles. The least correlated is Arch Capital Group Ltd. (ACGL) (Financial Services) with a 1Y correlation of -0.16, down from 0.12 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Arch Capital Group Ltd. | -0.16 | -0.01 | 0.12 | 62 | Financial Services | |
| Altria Group, Inc. | -0.16 | -0.01 | 0.07 | 80 | Consumer Defensive | |
| Philip Morris International Inc. | -0.14 | -0.00 | 0.10 | 52 | Consumer Defensive | |
| Chubb Limited | -0.14 | -0.04 | 0.10 | 82 | Financial Services | |
| Cboe Global Markets, Inc. | -0.14 | -0.11 | 0.05 | 60 | Financial Services |
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