Looking to balance out your exposure to SQM? The ETFs below have the lowest correlation with SQM — they tend to move on their own, which can help reduce risk when SQM drops. The stock ideas table highlights individual companies that behave independently from SQM.
Best Diversifiers for SQM
2 ETFs have low correlation with SQM (below 0.3), 0 of which are negatively correlated. The least correlated is State Street Energy Select Sector SPDR ETF (XLE) (Energy Equities) with a 1Y correlation of 0.01, down from 0.28 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street Energy Select Sector SPDR ETF | 0.01 | 0.14 | 0.28 | 55 | Energy Equities | SQM vs XLE | |
| Invesco Emerging Markets Sovereign Debt ETF | 0.25 | 0.28 | 0.29 | 60 | Emerging Markets Bonds | SQM vs PCY | |
| Invesco NASDAQ 100 ETF | 0.31 | 0.33 | 0.37 | 60 | Nasdaq-100 | SQM vs QQQM | |
| Invesco QQQ ETF | 0.31 | 0.33 | 0.37 | 59 | Nasdaq-100 | SQM vs QQQ | |
| Vanguard S&P 500 ETF | 0.33 | 0.35 | 0.40 | 70 | S&P 500 | SQM vs VOO |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SQM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SQM and solid risk/return profiles. The least correlated is Cheniere Energy, Inc. (LNG) (Energy) with a 1Y correlation of -0.08, down from 0.17 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cheniere Energy, Inc. | -0.08 | 0.05 | 0.17 | 55 | Energy | |
| The Coca-Cola Company | -0.05 | 0.01 | 0.08 | 81 | Consumer Defensive | |
| Occidental Petroleum Corporation | 0.05 | 0.18 | 0.28 | 68 | Energy | |
| Tyson Foods, Inc. | 0.06 | 0.10 | 0.16 | 61 | Consumer Defensive | |
| MetLife, Inc. | 0.08 | 0.17 | 0.28 | 73 | Financial Services |
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Build a portfolio that complements SQM
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