Looking to balance out your exposure to STM? The ETFs below have the lowest correlation with STM — they tend to move on their own, which can help reduce risk when STM drops. The stock ideas table highlights individual companies that behave independently from STM.
Best Diversifiers for STM
3 ETFs have low correlation with STM (below 0.3), 0 of which are negatively correlated. The least correlated is VanEck Commodity Strategy ETF (PIT) (Commodities) with a 1Y correlation of 0.02, roughly unchanged from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| VanEck Commodity Strategy ETF | 0.02 | 0.06 | 0.06 | 57 | Commodities | STM vs PIT | |
| First Trust Global Tactical Commodity Strategy Fun... | 0.05 | 0.12 | 0.14 | 55 | Commodities | STM vs FTGC | |
| SPDR Bloomberg Enhanced Roll Yield Commodity Strat... | 0.10 | — | — | 53 | Commodities | STM vs CERY | |
| SPDR S&P Oil & Gas Equipment & Services ETF | 0.31 | 0.29 | 0.30 | 82 | Energy Equities | STM vs XES | |
| Schwab U.S. Dividend Equity ETF | 0.36 | 0.43 | 0.50 | 77 | Dividend | STM vs SCHD |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from STM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to STM and solid risk/return profiles. The least correlated is Consolidated Edison, Inc. (ED) (Utilities) with a 1Y correlation of -0.19, down from -0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Consolidated Edison, Inc. | -0.19 | -0.08 | -0.01 | 61 | Utilities | |
| Duke Energy Corporation | -0.16 | -0.05 | -0.00 | 62 | Utilities | |
| Chevron Corporation | -0.04 | 0.07 | 0.14 | 70 | Energy | |
| Exxon Mobil Corporation | -0.04 | 0.06 | 0.13 | 72 | Energy | |
| Johnson & Johnson | -0.02 | 0.05 | 0.09 | 96 | Healthcare |
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