Looking to balance out your exposure to L? The ETFs below have the lowest correlation with L — they tend to move on their own, which can help reduce risk when L drops. The stock ideas table highlights individual companies that behave independently from L.
Best Diversifiers for L
4 ETFs have low correlation with L (below 0.3), 0 of which are negatively correlated. The least correlated is VanEck Inflation Allocation ETF (RAAX) (Diversified Portfolio) with a 1Y correlation of 0.14, down from 0.38 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| VanEck Inflation Allocation ETF | 0.14 | 0.22 | 0.38 | 86 | Diversified Portfolio | L vs RAAX | |
| Vanguard S&P 500 ETF | 0.17 | 0.29 | 0.46 | 74 | S&P 500 | L vs VOO | |
| State Street SPDR S&P 500 ETF | 0.18 | 0.29 | 0.46 | 74 | S&P 500 | L vs SPY | |
| iShares MSCI World ETF | 0.19 | 0.31 | 0.47 | 67 | Global Equities | L vs URTH | |
| Vanguard Dividend Appreciation ETF | 0.39 | 0.49 | 0.60 | 60 | Dividend | L vs VIG |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from L, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to L and solid risk/return profiles. The least correlated is Banco Macro S.A. (BMA) (Financial Services) with a 1Y correlation of 0.04, down from 0.24 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Banco Macro S.A. | 0.04 | 0.15 | 0.24 | 54 | Financial Services | |
| Jardine Matheson Holdings Ltd PK | 0.06 | 0.06 | 0.09 | 80 | Industrials | |
| Exxon Mobil Corporation | 0.09 | 0.23 | 0.36 | 86 | Energy | |
| Eli Lilly and Company | 0.11 | 0.13 | 0.17 | 75 | Healthcare | |
| Sumitomo Mitsui Financial Group, Inc. | 0.14 | 0.19 | 0.33 | 85 | Financial Services |
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