Looking to diversify beyond XLB? The ETFs below have historically moved differently from XLB, 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 XLB
325 ETFs have low correlation with XLB (below 0.3), 37 of which are negatively correlated. The least correlated is Invesco DB Energy Fund (DBE) (Oil & Gas) with a 1Y correlation of -0.27, down from 0.13 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB Energy Fund | -0.27 | -0.06 | 0.13 | 72 | Oil & Gas | XLB vs DBE | |
| ProShares Short Bitcoin ETF | -0.24 | -0.22 | — | 61 | Cryptocurrency | XLB vs BITI | |
| Proshares Ultrashort Bitcoin ETF | -0.24 | — | — | 55 | Cryptocurrency, Leveraged Cryptocurrency | XLB vs SBIT | |
| United States Brent Oil Fund LP | -0.23 | -0.04 | 0.11 | 52 | Oil & Gas | XLB vs BNO | |
| Alpha Architect Tail Risk ETF | -0.23 | -0.08 | — | 56 | Options Trading | XLB vs CAOS |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for XLB, 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 ConocoPhillips Company (COP) (Energy) with a 1Y correlation of -0.00, down from 0.33 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| ConocoPhillips Company | -0.00 | 0.19 | 0.33 | 72 | Energy | |
| BP p.l.c. | 0.01 | 0.21 | 0.34 | 84 | Energy | |
| Devon Energy Corporation | 0.02 | 0.26 | 0.39 | 76 | Energy | |
| Palo Alto Networks, Inc. | 0.03 | 0.17 | 0.27 | 88 | Technology | |
| Occidental Petroleum Corporation | 0.03 | 0.24 | 0.35 | 70 | Energy |
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