Looking to balance out your exposure to SCS? The ETFs below have the lowest correlation with SCS — they tend to move on their own, which can help reduce risk when SCS drops. The stock ideas table highlights individual companies that behave independently from SCS.
Best Diversifiers for SCS
2 ETFs have low correlation with SCS (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 0.25, down from 0.49 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street SPDR S&P 500 ETF | 0.25 | 0.43 | 0.49 | 74 | S&P 500 | SCS vs SPY | |
| Vanguard Total Stock Market ETF | 0.27 | 0.46 | 0.52 | 73 | Large Cap Blend Equities | SCS vs VTI |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SCS, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SCS and solid risk/return profiles. The least correlated is Red Cat Holdings, Inc. (RCAT) (Technology) with a 1Y correlation of 0.01, down from 0.13 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Red Cat Holdings, Inc. | 0.01 | 0.10 | 0.13 | 67 | Technology | |
| LightPath Technologies, Inc. | 0.01 | 0.05 | 0.13 | 95 | Technology | |
| Micron Technology, Inc. | 0.05 | 0.21 | 0.28 | 99 | Technology | |
| Uranium Energy Corp. | 0.11 | 0.13 | 0.22 | 81 | Energy | |
| Jabil Inc. | 0.14 | 0.29 | 0.37 | 92 | Technology |
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