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), 1 of which are negatively correlated. The least correlated is Invesco DB Commodity Index Tracking Fund (DBC) (Commodities) with a 1Y correlation of -0.36, down from 0.00 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB Commodity Index Tracking Fund | -0.36 | -0.14 | 0.00 | 75 | Commodities | LUV vs DBC | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | 0.06 | 0.01 | 0.00 | 100 | Government Bonds, Ultrashort Bond | LUV vs BIL | |
| iShares 0-1 Year Treasury Bond ETF | 0.14 | 0.06 | 0.02 | 100 | Government Bonds, Ultrashort Bond | LUV vs SHV | |
| JPMorgan Ultra-Short Income ETF | 0.26 | 0.11 | 0.06 | 99 | Ultrashort Bond | LUV vs JPST | |
| Vanguard Information Technology ETF | 0.30 | 0.29 | 0.37 | 76 | Technology Equities | LUV vs VGT |
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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 Coterra Energy Inc. (CTRA) (Energy) with a 1Y correlation of -0.20, down from 0.16 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Coterra Energy Inc. | -0.20 | 0.03 | 0.16 | 79 | Energy | |
| Imperial Oil Limited | -0.10 | 0.02 | 0.16 | 91 | Energy | |
| The Williams Companies, Inc. | -0.04 | 0.12 | 0.24 | 66 | Energy | |
| Halliburton Company | -0.00 | 0.10 | 0.23 | 94 | Energy | |
| Baker Hughes Company | 0.06 | 0.12 | 0.22 | 89 | Energy |
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Build a portfolio that complements LUV
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