Looking to balance out your exposure to LUV? The ETFs below have the lowest correlation with LUV — they tend to move on their own, which can help reduce risk when LUV drops. The stock ideas table highlights individual companies that behave independently from LUV.
Best Diversifiers for LUV
4 ETFs have low correlation with LUV (below 0.3), 0 of which are negatively correlated. The least correlated is SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) (Government Bonds) with a 1Y correlation of 0.05, roughly unchanged from 0.00 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| SPDR Bloomberg 1-3 Month T-Bill ETF | 0.05 | 0.00 | 0.00 | 100 | Government Bonds, Ultrashort Bond | LUV vs BIL | |
| iShares 0-1 Year Treasury Bond ETF | 0.18 | 0.07 | 0.02 | 100 | Government Bonds, Ultrashort Bond | LUV vs SHV | |
| Vanguard Information Technology ETF | 0.28 | 0.28 | 0.37 | 58 | Technology Equities | LUV vs VGT | |
| iShares Semiconductor ETF | 0.28 | 0.28 | 0.37 | 95 | Semiconductors, Technology Equities | LUV vs SOXX | |
| JPMorgan Ultra-Short Income ETF | 0.31 | 0.12 | 0.06 | 99 | Ultrashort Bond | LUV vs JPST |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from LUV, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to LUV and solid risk/return profiles. The least correlated is Imperial Oil Limited (IMO) (Energy) with a 1Y correlation of -0.11, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Imperial Oil Limited | -0.11 | 0.01 | 0.15 | 82 | Energy | |
| Halliburton Company | -0.04 | 0.08 | 0.21 | 88 | Energy | |
| The Williams Companies, Inc. | -0.03 | 0.12 | 0.24 | 75 | Energy | |
| Baker Hughes Company | 0.03 | 0.12 | 0.21 | 84 | Energy | |
| Lockheed Martin Corporation | 0.07 | 0.06 | 0.10 | 51 | Industrials |
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Build a portfolio that complements LUV
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Analyze a portfolio with LUV