Looking to balance out your exposure to REX? The ETFs below have historically moved differently from REX, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for REX
2 ETFs have low correlation with REX (below 0.3), 0 of which are negatively correlated. The least correlated is SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) (Government Bonds) with a 1Y correlation of 0.02, roughly unchanged from 0.00 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| SPDR Bloomberg 1-3 Month T-Bill ETF | 0.02 | 0.01 | 0.00 | 100 | Government Bonds, Ultrashort Bond | REX vs BIL | |
| State Street SPDR S&P 500 ETF | 0.12 | 0.26 | 0.35 | 78 | S&P 500 | REX vs SPY | |
| State Street Energy Select Sector SPDR ETF | 0.34 | 0.41 | 0.46 | 75 | Energy Equities | REX vs XLE |
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for REX, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is NextEra Energy, Inc. (NEE) (Utilities) with a 1Y correlation of 0.02, down from 0.15 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| NextEra Energy, Inc. | 0.02 | 0.15 | 0.15 | 77 | Utilities | |
| First Solar, Inc. | 0.02 | 0.21 | 0.23 | 61 | Technology | |
| Bezeq Corp Ltd | 0.04 | 0.01 | -0.00 | 72 | Communication Services | |
| New Oriental Education & Technology Group Inc. | 0.05 | 0.13 | 0.12 | 71 | Consumer Defensive | |
| Xenon Pharmaceuticals Inc. | 0.05 | 0.14 | 0.18 | 94 | Healthcare |
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