Looking to balance out your exposure to PEN? The ETFs below have the lowest correlation with PEN — they tend to move on their own, which can help reduce risk when PEN drops. The stock ideas table highlights individual companies that behave independently from PEN.
Best Diversifiers for PEN
4 ETFs have low correlation with PEN (below 0.3), 0 of which are negatively correlated. The least correlated is Invesco QQQ ETF (QQQ) (Nasdaq-100) with a 1Y correlation of 0.10, down from 0.39 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco QQQ ETF | 0.10 | 0.27 | 0.39 | 73 | Nasdaq-100 | PEN vs QQQ | |
| Global X NASDAQ 100 Covered Call ETF | 0.15 | 0.27 | 0.40 | 88 | Nasdaq-100, Derivative Income | PEN vs QYLD | |
| State Street SPDR S&P 500 ETF | 0.18 | 0.32 | 0.42 | 70 | S&P 500 | PEN vs SPY | |
| Vanguard S&P 500 ETF | 0.19 | 0.32 | 0.42 | 70 | S&P 500 | PEN vs VOO |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from PEN, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to PEN and solid risk/return profiles. The least correlated is Advanced Micro Devices, Inc. (AMD) (Technology) with a 1Y correlation of -0.05, down from 0.25 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Advanced Micro Devices, Inc. | -0.05 | 0.15 | 0.25 | 98 | Technology | |
| Ventas, Inc. | -0.03 | 0.13 | 0.20 | 80 | Real Estate | |
| Walmart Inc. | -0.02 | 0.13 | 0.16 | 63 | Consumer Defensive | |
| Rolls-Royce Holdings plc | -0.01 | 0.13 | 0.16 | 70 | Industrials | |
| Apple Inc | -0.00 | 0.14 | 0.26 | 89 | Technology |
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