Looking to diversify beyond UDN? The ETFs below have historically moved differently from UDN, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for UDN
754 ETFs have low correlation with UDN (below 0.3), 74 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.69, roughly unchanged from -0.59 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.69 | -0.64 | -0.59 | 56 | Leveraged Currency | UDN vs YCS | |
| TCW AAA CLO ETF | -0.32 | — | — | 99 | CLO | UDN vs ACLO | |
| United States Brent Oil Fund LP | -0.26 | -0.09 | 0.03 | 52 | Oil & Gas | UDN vs BNO | |
| United States Oil Fund LP | -0.25 | -0.10 | 0.03 | 55 | Oil & Gas | UDN vs USO | |
| United States Gasoline Fund LP | -0.22 | -0.10 | 0.02 | 87 | Oil & Gas | UDN vs UGA |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for UDN, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.09, down from 0.11 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.09 | 0.06 | 0.11 | 66 | Consumer Defensive | |
| Consolidated Edison, Inc. | -0.00 | 0.11 | 0.13 | 59 | Utilities | |
| The Coca-Cola Company | 0.01 | 0.13 | 0.18 | 90 | Consumer Defensive | |
| Duke Energy Corporation | 0.01 | 0.13 | 0.15 | 56 | Utilities | |
| PepsiCo, Inc. | 0.05 | 0.08 | 0.13 | 50 | Consumer Defensive |
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