Looking to balance out your exposure to LC? The ETFs below have the lowest correlation with LC — they tend to move on their own, which can help reduce risk when LC drops. The stock ideas table highlights individual companies that behave independently from LC.
Best Diversifiers for LC
0 ETFs have low correlation with LC (below 0.3), 0 of which are negatively correlated. The least correlated is VanEck Semiconductor ETF (SMH) (Semiconductors) with a 1Y correlation of 0.35, down from 0.50 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| VanEck Semiconductor ETF | 0.35 | 0.38 | 0.50 | 94 | Semiconductors, Technology Equities | LC vs SMH | |
| Saba Closed-End Funds ETF | 0.43 | 0.45 | 0.48 | 85 | Event Driven, Actively Managed | LC vs CEFS | |
| Bridges Capital Tactical ETF | 0.45 | 0.47 | — | 62 | Large Cap Blend Equities | LC vs BDGS | |
| Fidelity Momentum Factor ETF | 0.49 | 0.51 | 0.58 | 53 | Momentum, Large Cap Growth Equities | LC vs FDMO | |
| NEOS Nasdaq-100 High Income ETF | 0.50 | — | — | 54 | Nasdaq-100, Derivative Income | LC vs QQQI |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from LC, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to LC and solid risk/return profiles. The least correlated is Takeda Pharmaceutical Company Limited (TAK) (Healthcare) with a 1Y correlation of 0.08, roughly unchanged from 0.17 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Takeda Pharmaceutical Company Limited | 0.08 | 0.13 | 0.17 | 50 | Healthcare | |
| NVIDIA Corporation | 0.26 | 0.27 | 0.42 | 70 | Technology | |
| Fortinet, Inc. | 0.27 | 0.31 | 0.39 | 67 | Technology | |
| Orchid Island Capital, Inc. | 0.30 | 0.41 | 0.44 | 64 | Real Estate | |
| Green Brick Partners, Inc. | 0.31 | 0.40 | 0.44 | 63 | Consumer Cyclical |
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