Looking to balance out your exposure to MLR? The ETFs below have the lowest correlation with MLR — they tend to move on their own, which can help reduce risk when MLR drops. The stock ideas table highlights individual companies that behave independently from MLR.
Best Diversifiers for MLR
1 ETFs have low correlation with MLR (below 0.3), 1 of which are negatively correlated. The least correlated is iShares 0-3 Month Treasury Bond ETF (SGOV) (Ultrashort Bond) with a 1Y correlation of -0.06, roughly unchanged from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-3 Month Treasury Bond ETF | -0.06 | 0.01 | 0.03 | 100 | Ultrashort Bond | MLR vs SGOV | |
| Vanguard S&P 500 ETF | 0.37 | 0.47 | 0.46 | 70 | S&P 500 | MLR vs VOO | |
| Schwab U.S. Dividend Equity ETF | 0.46 | 0.49 | 0.52 | 80 | Dividend | MLR vs SCHD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from MLR, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to MLR and solid risk/return profiles. The least correlated is The Coca-Cola Company (KO) (Consumer Defensive) with a 1Y correlation of 0.04, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| The Coca-Cola Company | 0.04 | 0.04 | 0.15 | 66 | Consumer Defensive | |
| Viper Energy Partners LP | 0.04 | 0.23 | 0.23 | 60 | Energy | |
| Sunoco LP | 0.09 | 0.21 | 0.24 | 76 | Energy | |
| Permian Resources Corporation | 0.10 | 0.26 | — | 81 | Energy | |
| Celestica Inc. | 0.10 | 0.22 | 0.28 | 94 | Technology |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements MLR
Add MLR to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with MLR