Looking to balance out your exposure to SHO? The ETFs below have the lowest correlation with SHO — they tend to move on their own, which can help reduce risk when SHO drops. The stock ideas table highlights individual companies that behave independently from SHO.
Best Diversifiers for SHO
1 ETFs have low correlation with SHO (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Treasury ETF (VGSH) (Government Bonds) with a 1Y correlation of 0.21, up from 0.04 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Treasury ETF | 0.21 | 0.07 | 0.04 | 87 | Government Bonds, Short-Term Bond | SHO vs VGSH | |
| Vanguard S&P 500 ETF | 0.36 | 0.48 | 0.54 | 66 | S&P 500 | SHO vs VOO | |
| State Street SPDR S&P 500 ETF | 0.36 | 0.47 | 0.54 | 66 | S&P 500 | SHO vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SHO, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SHO and solid risk/return profiles. The least correlated is Two Harbors Investment Corp. (TWO) (Real Estate) with a 1Y correlation of 0.24, down from 0.46 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Two Harbors Investment Corp. | 0.24 | 0.39 | 0.46 | 70 | Real Estate |
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