Looking to balance out your exposure to LUV? The ETFs below have historically moved differently from LUV, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for LUV
4 ETFs have low correlation with LUV (below 0.3), 2 of which are negatively correlated. The least correlated is Invesco DB Commodity Index Tracking Fund (DBC) (Commodities) with a 1Y correlation of -0.43, down from -0.04 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB Commodity Index Tracking Fund | -0.43 | -0.20 | -0.04 | 68 | Commodities | LUV vs DBC | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.01 | 0.00 | -0.01 | 100 | Government Bonds, Ultrashort Bond | LUV vs BIL | |
| iShares 0-1 Year Treasury Bond ETF | 0.16 | 0.08 | 0.02 | 100 | Government Bonds, Ultrashort Bond | LUV vs SHV | |
| Schwab U.S. Dividend Equity ETF | 0.27 | 0.35 | 0.44 | 95 | Dividend | LUV vs SCHD | |
| State Street Health Care Select Sector SPDR ETF | 0.30 | 0.31 | 0.30 | 68 | Health & Biotech Equities | LUV vs XLV |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for LUV, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Occidental Petroleum Corporation (OXY) (Energy) with a 1Y correlation of -0.30, down from 0.10 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Occidental Petroleum Corporation | -0.30 | -0.06 | 0.10 | 68 | Energy | |
| Imperial Oil Limited | -0.17 | -0.02 | 0.12 | 87 | Energy | |
| Halliburton Company | -0.06 | 0.04 | 0.18 | 81 | Energy | |
| The Williams Companies, Inc. | -0.03 | 0.11 | 0.22 | 71 | Energy | |
| Baker Hughes Company | 0.03 | 0.10 | 0.19 | 78 | Energy |
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