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
10 ETFs have low correlation with STM (below 0.3), 1 of which are negatively correlated. The least correlated is iShares GSCI Commodity Dynamic Roll Strategy ETF (COMT) (Commodities) with a 1Y correlation of -0.04, down from 0.07 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares GSCI Commodity Dynamic Roll Strategy ETF | -0.04 | 0.03 | 0.07 | 53 | Commodities | STM vs COMT | |
| United States Commodity Index Fund | 0.03 | 0.08 | 0.13 | 75 | Commodities | STM vs USCI | |
| iShares Global Energy ETF | 0.03 | 0.13 | 0.22 | 62 | Energy Equities | STM vs IXC | |
| Teucrium Soybean Fund | 0.05 | 0.13 | 0.10 | 53 | Agricultural Commodities | STM vs SOYB | |
| VanEck Commodity Strategy ETF | 0.06 | 0.07 | — | 78 | Commodities | STM vs PIT |
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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 -0.24, down from -0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Consolidated Edison, Inc. | -0.24 | -0.10 | -0.02 | 69 | Utilities | |
| Waste Management, Inc. | -0.21 | -0.05 | 0.07 | 51 | Industrials | |
| Duke Energy Corporation | -0.19 | -0.08 | -0.01 | 63 | Utilities | |
| Cheniere Energy, Inc. | -0.13 | 0.02 | 0.11 | 55 | Energy | |
| CF Industries Holdings, Inc. | -0.11 | 0.04 | 0.10 | 64 | Basic Materials |
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