Looking to balance out your exposure to PDO? The ETFs below have the lowest correlation with PDO — they tend to move on their own, which can help reduce risk when PDO drops. The stock ideas table highlights individual companies that behave independently from PDO.
Best Diversifiers for PDO
18 ETFs have low correlation with PDO (below 0.3), 1 of which are negatively correlated. The least correlated is iShares 0-3 Month Treasury Bond ETF (SGOV) (Ultrashort Bond) with a 1Y correlation of -0.06, roughly unchanged from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-3 Month Treasury Bond ETF | -0.06 | -0.00 | 0.03 | 100 | Ultrashort Bond | PDO vs SGOV | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.02 | 0.17 | 0.16 | 93 | Inflation-Protected Bonds | PDO vs VTIP | |
| PIMCO Enhanced Short Maturity Active ETF | 0.04 | 0.05 | 0.15 | 100 | Ultrashort Bond | PDO vs MINT | |
| BlackRock AAA CLO ETF | 0.11 | 0.08 | — | 99 | CLO | PDO vs CLOA | |
| Janus Henderson AAA CLO ETF | 0.13 | 0.15 | 0.10 | 98 | CLO | PDO vs JAAA |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from PDO, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to PDO and solid risk/return profiles. The least correlated is Woodside Energy Group Ltd (WDS) (Energy) with a 1Y correlation of -0.10, down from 0.20 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Woodside Energy Group Ltd | -0.10 | 0.14 | 0.20 | 85 | Energy | |
| Altria Group, Inc. | -0.08 | 0.06 | 0.13 | 69 | Consumer Defensive | |
| Antero Midstream Corporation | -0.06 | 0.18 | 0.27 | 65 | Energy | |
| Walmart Inc. | 0.06 | 0.12 | 0.17 | 63 | Consumer Defensive | |
| Clearway Energy, Inc. | 0.11 | 0.22 | 0.28 | 76 | Utilities |
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Build a portfolio that complements PDO
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