Looking to balance out your exposure to SD? The ETFs below have the lowest correlation with SD — they tend to move on their own, which can help reduce risk when SD drops. The stock ideas table highlights individual companies that behave independently from SD.
Best Diversifiers for SD
2 ETFs have low correlation with SD (below 0.3), 2 of which are negatively correlated. The least correlated is Vanguard S&P 500 ETF (VOO) (S&P 500) with a 1Y correlation of -0.12, down from 0.26 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard S&P 500 ETF | -0.12 | 0.14 | 0.26 | 74 | S&P 500 | SD vs VOO | |
| State Street SPDR S&P 500 ETF | -0.12 | 0.14 | 0.26 | 74 | S&P 500 | SD vs SPY | |
| State Street Energy Select Sector SPDR ETF | 0.63 | 0.67 | 0.69 | 70 | Energy Equities | SD vs XLE |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SD and solid risk/return profiles. The least correlated is Cavco Industries, Inc. (CVCO) (Consumer Cyclical) with a 1Y correlation of -0.09, down from 0.19 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cavco Industries, Inc. | -0.09 | 0.15 | 0.19 | 59 | Consumer Cyclical | |
| M/I Homes, Inc. | -0.09 | 0.15 | 0.20 | 63 | Consumer Cyclical | |
| DXP Enterprises, Inc. | -0.06 | 0.18 | 0.29 | 83 | Industrials | |
| NVIDIA Corporation | -0.06 | 0.05 | 0.15 | 80 | Technology | |
| Adeia Inc | -0.04 | 0.15 | 0.19 | 90 | Technology |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements SD
Add SD to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with SD