Looking to balance out your exposure to KD? The ETFs below have the lowest correlation with KD — they tend to move on their own, which can help reduce risk when KD drops. The stock ideas table highlights individual companies that behave independently from KD.
Best Diversifiers for KD
9 ETFs have low correlation with KD (below 0.3), 1 of which are negatively correlated. The least correlated is WisdomTree Japan Opportunities ETF (OPPJ) (Japan Equities) with a 1Y correlation of -0.03, down from 0.13 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| WisdomTree Japan Opportunities ETF | -0.03 | 0.13 | — | 94 | Japan Equities, Asia Pacific Equities | KD vs OPPJ | |
| WisdomTree Japan Hedged Equity Fund | 0.05 | 0.23 | — | 94 | Japan Equities, Asia Pacific Equities | KD vs DXJ | |
| Invesco S&P 500 Momentum ETF | 0.05 | 0.33 | — | 51 | Momentum, S&P 500 | KD vs SPMO | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | 0.07 | -0.00 | — | 100 | Government Bonds, Ultrashort Bond | KD vs BIL | |
| Vanguard FTSE Developed Markets ETF | 0.15 | 0.33 | — | 59 | Foreign Large Cap Equities | KD vs VEA |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from KD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to KD and solid risk/return profiles. The least correlated is Argan, Inc. (AGX) (Industrials) with a 1Y correlation of -0.10, down from 0.21 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Argan, Inc. | -0.10 | 0.15 | 0.21 | 92 | Industrials | |
| Johnson & Johnson | -0.08 | -0.05 | — | 96 | Healthcare | |
| Comfort Systems USA, Inc. | -0.07 | 0.23 | — | 97 | Industrials | |
| Sterling Infrastructure, Inc. | -0.06 | 0.24 | 0.28 | 91 | Industrials | |
| Micron Technology, Inc. | -0.06 | 0.18 | 0.25 | 99 | Technology |
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