Looking to balance out your exposure to PCT? The ETFs below have the lowest correlation with PCT — they tend to move on their own, which can help reduce risk when PCT drops. The stock ideas table highlights individual companies that behave independently from PCT.
Best Diversifiers for PCT
0 ETFs have low correlation with PCT (below 0.3), 0 of which are negatively correlated. The least correlated is iShares iBoxx $ High Yield Corporate Bond ETF (HYG) (High Yield Bonds) with a 1Y correlation of 0.34, roughly unchanged from 0.33 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares iBoxx $ High Yield Corporate Bond ETF | 0.34 | 0.34 | 0.33 | 52 | High Yield Bonds | PCT vs HYG | |
| iShares MSCI USA Quality Factor ETF | 0.35 | 0.35 | 0.37 | 54 | Large Cap Blend Equities | PCT vs QUAL | |
| Invesco QQQ ETF | 0.36 | 0.35 | 0.38 | 59 | Nasdaq-100 | PCT vs QQQ | |
| Vanguard S&P 500 ETF | 0.39 | 0.39 | 0.40 | 60 | S&P 500 | PCT vs VOO | |
| State Street SPDR S&P 500 ETF | 0.39 | 0.39 | 0.40 | 60 | S&P 500 | PCT vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from PCT, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to PCT and solid risk/return profiles. The least correlated is Welltower Inc. (WELL) (Real Estate) with a 1Y correlation of -0.03, down from 0.13 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Welltower Inc. | -0.03 | 0.06 | 0.13 | 87 | Real Estate | |
| Quest Diagnostics Incorporated | 0.00 | 0.07 | 0.06 | 63 | Healthcare | |
| Halozyme Therapeutics, Inc. | 0.01 | 0.15 | 0.19 | 69 | Healthcare | |
| Exxon Mobil Corporation | 0.01 | 0.09 | 0.13 | 74 | Energy | |
| FedEx Corporation | 0.06 | 0.17 | 0.21 | 97 | Industrials |
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