Looking to balance out your exposure to MSFT? The ETFs below have the lowest correlation with MSFT — they tend to move on their own, which can help reduce risk when MSFT drops. The stock ideas table highlights individual companies that behave independently from MSFT.
Best Diversifiers for MSFT
262 ETFs have low correlation with MSFT (below 0.3), 33 of which are negatively correlated. The least correlated is iShares Core High Dividend ETF (HDV) (Dividend) with a 1Y correlation of -0.17, down from 0.22 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares Core High Dividend ETF | -0.17 | -0.01 | 0.22 | 73 | Dividend, Large Cap Value Equities | MSFT vs HDV | |
| Direxion Daily Energy Bull 2X Shares | -0.12 | -0.04 | 0.08 | 68 | Leveraged Equities | MSFT vs ERX | |
| ProShares Ultra Oil & Gas | -0.12 | -0.04 | 0.08 | 68 | Leveraged Equities | MSFT vs DIG | |
| State Street Energy Select Sector SPDR ETF | -0.12 | -0.04 | 0.08 | 70 | Energy Equities | MSFT vs XLE | |
| Texas Capital Texas Oil Index ETF | -0.12 | — | — | 54 | Energy Equities | MSFT vs OILT |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from MSFT, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to MSFT and solid risk/return profiles. The least correlated is Merck & Co., Inc. (MRK) (Healthcare) with a 1Y correlation of -0.23, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Merck & Co., Inc. | -0.23 | -0.07 | 0.03 | 90 | Healthcare | |
| The Coca-Cola Company | -0.22 | -0.06 | 0.14 | 62 | Consumer Defensive | |
| PepsiCo, Inc. | -0.19 | -0.03 | 0.14 | 57 | Consumer Defensive | |
| Johnson & Johnson | -0.19 | -0.12 | 0.06 | 94 | Healthcare | |
| Verizon Communications Inc. | -0.18 | -0.11 | 0.01 | 56 | Communication Services |
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