Looking to balance out your exposure to NE? The ETFs below have the lowest correlation with NE — they tend to move on their own, which can help reduce risk when NE drops. The stock ideas table highlights individual companies that behave independently from NE.
Best Diversifiers for NE
5 ETFs have low correlation with NE (below 0.3), 0 of which are negatively correlated. The least correlated is Invesco QQQ ETF (QQQ) (Nasdaq-100) with a 1Y correlation of 0.09, down from 0.23 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco QQQ ETF | 0.09 | 0.20 | 0.23 | 59 | Nasdaq-100 | NE vs QQQ | |
| iShares Semiconductor ETF | 0.14 | 0.23 | 0.25 | 95 | Semiconductors, Technology Equities | NE vs SOXX | |
| Vanguard S&P 500 ETF | 0.18 | 0.27 | 0.31 | 60 | S&P 500 | NE vs VOO | |
| Vanguard Total Stock Market ETF | 0.20 | 0.29 | 0.33 | 60 | Large Cap Blend Equities | NE vs VTI | |
| ALPS Barron's 400 ETF | 0.29 | 0.39 | 0.41 | 56 | Mid Cap Blend Equities | NE vs BFOR |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from NE, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to NE and solid risk/return profiles. The least correlated is Colgate-Palmolive Company (CL) (Consumer Defensive) with a 1Y correlation of 0.01, roughly unchanged from -0.00 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Colgate-Palmolive Company | 0.01 | -0.02 | -0.00 | 50 | Consumer Defensive | |
| NVIDIA Corporation | 0.03 | 0.12 | 0.17 | 70 | Technology | |
| PepsiCo, Inc. | 0.04 | 0.02 | 0.05 | 59 | Consumer Defensive | |
| Tesla, Inc. | 0.06 | 0.16 | 0.18 | 50 | Consumer Cyclical | |
| Micron Technology, Inc. | 0.07 | 0.20 | 0.21 | 99 | Technology |
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