Looking to diversify beyond SDY? The ETFs below have the lowest correlation with SDY — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from SDY.
Best Diversifiers for SDY
628 ETFs have low correlation with SDY (below 0.3), 53 of which are negatively correlated. The least correlated is Direxion Daily MU Bull 2X Shares (MUU) (Leveraged Equities) with a 1Y correlation of -0.47, roughly unchanged from -0.47 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Direxion Daily MU Bull 2X Shares | -0.47 | -0.47 | -0.47 | 99 | Leveraged Equities, Semiconductors | SDY vs MUU | |
| ProShares UltraShort Yen | -0.24 | -0.16 | -0.11 | 72 | Leveraged Currency | SDY vs YCS | |
| Invesco DB US Dollar Index Bullish Fund | -0.22 | -0.24 | -0.30 | 51 | Currency | SDY vs UUP | |
| Invesco DB Energy Fund | -0.18 | -0.07 | 0.09 | 53 | Oil & Gas | SDY vs DBE | |
| United States Gasoline Fund LP | -0.17 | -0.06 | 0.09 | 78 | Oil & Gas | SDY vs UGA |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SDY, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SDY and solid risk/return profiles. The least correlated is Credo Technology Group Holding Ltd (CRDO) (Technology) with a 1Y correlation of -0.17, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Credo Technology Group Holding Ltd | -0.17 | 0.02 | 0.15 | 83 | Technology | |
| NVIDIA Corporation | -0.15 | 0.01 | 0.22 | 65 | Technology | |
| Broadcom Inc. | -0.10 | 0.08 | 0.26 | 71 | Technology | |
| CrowdStrike Holdings, Inc. | -0.09 | 0.07 | 0.19 | 77 | Technology | |
| AppLovin Corporation | -0.07 | 0.07 | 0.18 | 60 | Communication Services |
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