Looking to balance out your exposure to RWT? The ETFs below have the lowest correlation with RWT — they tend to move on their own, which can help reduce risk when RWT drops. The stock ideas table highlights individual companies that behave independently from RWT.
Best Diversifiers for RWT
0 ETFs have low correlation with RWT (below 0.3), 0 of which are negatively correlated. The least correlated is State Street SPDR S&P 500 ETF (SPY) (S&P 500) with a 1Y correlation of 0.36, down from 0.51 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street SPDR S&P 500 ETF | 0.36 | 0.44 | 0.51 | 70 | S&P 500 | RWT vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from RWT, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to RWT and solid risk/return profiles. The least correlated is Verizon Communications Inc. (VZ) (Communication Services) with a 1Y correlation of 0.07, down from 0.20 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Verizon Communications Inc. | 0.07 | 0.17 | 0.20 | 59 | Communication Services | |
| DigitalBridge Group, Inc. | 0.27 | 0.39 | 0.45 | 73 | Real Estate | |
| Innovative Industrial Properties, Inc. | 0.44 | 0.48 | 0.48 | 56 | Real Estate | |
| ARMOUR Residential REIT, Inc. | 0.54 | 0.61 | 0.64 | 67 | Real Estate | |
| Ellington Financial Inc. | 0.56 | 0.67 | 0.68 | 69 | Real Estate |
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