Looking to balance out your exposure to OCSL? The ETFs below have the lowest correlation with OCSL — they tend to move on their own, which can help reduce risk when OCSL drops. The stock ideas table highlights individual companies that behave independently from OCSL.
Best Diversifiers for OCSL
2 ETFs have low correlation with OCSL (below 0.3), 1 of which are negatively correlated. The least correlated is iShares Treasury Floating Rate Bond ETF (TFLO) (Government Bonds) with a 1Y correlation of -0.03, roughly unchanged from -0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares Treasury Floating Rate Bond ETF | -0.03 | -0.01 | -0.03 | 100 | Government Bonds, Ultrashort Bond | OCSL vs TFLO | |
| iShares iBoxx $ High Yield Corporate Bond ETF | 0.30 | 0.32 | 0.38 | 55 | High Yield Bonds | OCSL vs HYG | |
| Schwab U.S. Dividend Equity ETF | 0.30 | 0.40 | 0.46 | 80 | Dividend | OCSL vs SCHD | |
| Global X NASDAQ 100 Covered Call ETF | 0.32 | 0.29 | 0.38 | 88 | Nasdaq-100, Derivative Income | OCSL vs QYLD | |
| Invesco QQQ ETF | 0.32 | 0.29 | 0.38 | 73 | Nasdaq-100 | OCSL vs QQQ |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from OCSL, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to OCSL and solid risk/return profiles. The least correlated is Johnson & Johnson (JNJ) (Healthcare) with a 1Y correlation of -0.07, down from 0.09 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Johnson & Johnson | -0.07 | 0.03 | 0.09 | 92 | Healthcare | |
| Altria Group, Inc. | -0.06 | 0.06 | 0.15 | 69 | Consumer Defensive | |
| The Coca-Cola Company | -0.04 | 0.04 | 0.13 | 66 | Consumer Defensive | |
| Eli Lilly and Company | -0.03 | 0.05 | 0.09 | 72 | Healthcare | |
| TC Energy Corporation | -0.02 | 0.11 | 0.22 | 87 | Energy |
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Build a portfolio that complements OCSL
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