Looking to balance out your exposure to OTCM? The ETFs below have the lowest correlation with OTCM — they tend to move on their own, which can help reduce risk when OTCM drops. The stock ideas table highlights individual companies that behave independently from OTCM.
Best Diversifiers for OTCM
8 ETFs have low correlation with OTCM (below 0.3), 6 of which are negatively correlated. The least correlated is Alpha Architect 1-3 Month Box ETF (BOXX) (Ultrashort Bond) with a 1Y correlation of -0.06, roughly unchanged from -0.02 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Alpha Architect 1-3 Month Box ETF | -0.06 | -0.02 | — | 100 | Ultrashort Bond | OTCM vs BOXX | |
| First Trust Dow Jones Global Select Dividend Index... | -0.06 | -0.03 | 0.02 | 70 | Global Equities, Dividend | OTCM vs FGD | |
| iMGP DBi Managed Futures Strategy ETF | -0.06 | -0.02 | -0.01 | 87 | Systematic Trend | OTCM vs DBMF | |
| Vanguard Short-Term Inflation-Protected Securities... | -0.04 | -0.03 | -0.04 | 91 | Inflation-Protected Bonds | OTCM vs VTIP | |
| iShares 0-3 Month Treasury Bond ETF | -0.02 | -0.03 | -0.05 | 100 | Ultrashort Bond | OTCM vs SGOV |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from OTCM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to OTCM and solid risk/return profiles. The least correlated is Waste Management, Inc. (WM) (Industrials) 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 |
|---|---|---|---|---|---|---|
| Waste Management, Inc. | 0.01 | -0.01 | 0.00 | 53 | Industrials | |
| Chubb Limited | 0.02 | 0.03 | 0.06 | 86 | Financial Services | |
| Peoples Bancorp Inc. | 0.02 | 0.05 | 0.05 | 80 | Financial Services | |
| McKesson Corporation | 0.03 | 0.03 | 0.03 | 60 | Healthcare | |
| Banco Latinoamericano de Comercio Exterior, S.A | 0.03 | -0.00 | 0.01 | 88 | Financial Services |
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