Looking to balance out your exposure to RLJ? The ETFs below have historically moved differently from RLJ, 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 RLJ
6 ETFs have low correlation with RLJ (below 0.3), 1 of which are negatively correlated. The least correlated is Breakwave Tanker Shipping ETF (BWET) (Commodities) with a 1Y correlation of -0.01, roughly unchanged from -0.01 over 3 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Breakwave Tanker Shipping ETF | -0.01 | -0.01 | — | 99 | Commodities | RLJ vs BWET | |
| Franklin FTSE South Korea ETF | 0.16 | 0.23 | 0.33 | 85 | South Korea Equities, Asia Pacific Equities | RLJ vs FLKR | |
| SPDR S&P Telecom ETF | 0.19 | 0.35 | 0.47 | 86 | Communications Equities | RLJ vs XTL | |
| SPDR S&P Oil & Gas Equipment & Services ETF | 0.21 | 0.33 | 0.41 | 80 | Energy Equities | RLJ vs XES | |
| iShares Semiconductor ETF | 0.22 | 0.29 | 0.39 | 89 | Semiconductors, Technology Equities | RLJ vs SOXX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for RLJ, 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 Verizon Communications Inc. (VZ) (Communication Services) with a 1Y correlation of 0.08, roughly unchanged from 0.15 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Verizon Communications Inc. | 0.08 | 0.12 | 0.15 | 63 | Communication Services | |
| Realty Income Corporation | 0.20 | 0.25 | 0.31 | 69 | Real Estate | |
| EPR Properties | 0.31 | 0.41 | 0.51 | 66 | Real Estate | |
| Annaly Capital Management, Inc. | 0.36 | 0.41 | 0.46 | 76 | Real Estate | |
| First Horizon Corporation | 0.38 | 0.42 | 0.40 | 70 | Financial Services |
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