Looking to balance out your exposure to SR? The ETFs below have the lowest correlation with SR — they tend to move on their own, which can help reduce risk when SR drops. The stock ideas table highlights individual companies that behave independently from SR.
Best Diversifiers for SR
1 ETFs have low correlation with SR (below 0.3), 1 of which are negatively correlated. The least correlated is First Trust Senior Loan Fund (FTSL) (High Yield Bonds) with a 1Y correlation of -0.03, down from 0.14 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| First Trust Senior Loan Fund | -0.03 | 0.10 | 0.14 | 60 | High Yield Bonds | SR vs FTSL |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SR, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SR and solid risk/return profiles. The least correlated is Twilio Inc. (TWLO) (Communication Services) with a 1Y correlation of -0.02, down from 0.08 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Twilio Inc. | -0.02 | 0.10 | 0.08 | 81 | Communication Services | |
| Kenon Holdings Ltd. | 0.03 | 0.06 | 0.10 | 95 | Utilities | |
| Sonic Automotive, Inc. | 0.07 | 0.21 | 0.25 | 54 | Consumer Cyclical | |
| Brookfield Renewable Corporation | 0.07 | — | — | 66 | Utilities | |
| Chunghwa Telecom Co., Ltd. | 0.08 | 0.13 | 0.16 | 53 | Communication Services |
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