Looking to balance out your exposure to NLY? The ETFs below have historically moved differently from NLY, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for NLY
100 ETFs have low correlation with NLY (below 0.3), 14 of which are negatively correlated. The least correlated is Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) (Commodities) with a 1Y correlation of -0.21, down from 0.09 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco Optimum Yield Diversified Commodity Strate... | -0.21 | -0.02 | 0.09 | 58 | Commodities | NLY vs PDBC | |
| Invesco DB Commodity Index Tracking Fund | -0.20 | -0.02 | 0.10 | 56 | Commodities | NLY vs DBC | |
| SPDR S&P Oil & Gas Exploration & Production ETF | -0.17 | 0.13 | 0.27 | 50 | Energy Equities | NLY vs XOP | |
| Fidelity Managed Futures ETF | -0.15 | — | — | 77 | Systematic Trend, Actively Managed | NLY vs FFUT | |
| Fidelity MSCI Energy Index ETF | -0.14 | 0.14 | 0.27 | 69 | Energy Equities | NLY vs FENY |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for NLY, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Occidental Petroleum Corporation (OXY) (Energy) with a 1Y correlation of -0.21, down from 0.21 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Occidental Petroleum Corporation | -0.21 | 0.07 | 0.21 | 68 | Energy | |
| Chevron Corporation | -0.20 | 0.09 | 0.23 | 76 | Energy | |
| ConocoPhillips Company | -0.20 | 0.07 | 0.19 | 71 | Energy | |
| Exxon Mobil Corporation | -0.19 | 0.07 | 0.20 | 85 | Energy | |
| BP p.l.c. | -0.14 | 0.09 | 0.21 | 77 | Energy |
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