Looking to diversify beyond MJ? The ETFs below have the lowest correlation with MJ — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from MJ.
Best Diversifiers for MJ
1196 ETFs have low correlation with MJ (below 0.3), 54 of which are negatively correlated. The least correlated is iShares 0-1 Year Treasury Bond ETF (SHV) (Government Bonds) with a 1Y correlation of -0.16, down from -0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-1 Year Treasury Bond ETF | -0.16 | -0.03 | -0.01 | 100 | Government Bonds, Ultrashort Bond | MJ vs SHV | |
| iShares Enhanced Short-Term Bond Active ETF | -0.14 | — | — | 99 | Ultrashort Bond | MJ vs CSHP | |
| Breakwave Tanker Shipping ETF | -0.13 | -0.05 | -0.06 | 98 | Commodities | MJ vs BWET | |
| Roundhill Weekly T-Bill ETF | -0.12 | -0.09 | -0.09 | 99 | Ultrashort Bond | MJ vs WEEK | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.11 | -0.06 | -0.01 | 100 | Government Bonds, Ultrashort Bond | MJ vs BIL |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from MJ, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to MJ and solid risk/return profiles. The least correlated is Innovative Industrial Properties, Inc. (IIPR) (Real Estate) with a 1Y correlation of 0.41, roughly unchanged from 0.50 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Innovative Industrial Properties, Inc. | 0.41 | 0.43 | 0.50 | 60 | Real Estate |
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