Looking to diversify beyond ALAFX? The mutual funds below have historically moved differently from ALAFX, 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 ALAFX
5 mutual funds have low correlation with ALAFX (below 0.3), 1 of which are negatively correlated. The least correlated is Federated Hermes MDT Market Neutral A (QAMNX) (Long-Short) with a 1Y correlation of -0.14, down from 0.04 over 3 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Federated Hermes MDT Market Neutral A | -0.14 | 0.04 | — | 54 | Long-Short | ALAFX vs QAMNX | |
| Lord Abbett Short Duration Core Bond Fund | 0.11 | 0.05 | 0.07 | 80 | Short-Term Bond | ALAFX vs LSCIX | |
| Cliffwater Corporate Lending Fund Class I Shares | 0.13 | 0.08 | 0.09 | 100 | Bank Loan, High Yield Bonds | ALAFX vs CCLFX | |
| Vanguard Ultra-Short-Term Bond Fund Admiral Shares | 0.16 | 0.06 | 0.11 | 100 | Total Bond Market | ALAFX vs VUSFX | |
| Holbrook Income Fund | 0.23 | 0.12 | 0.15 | 98 | Short-Term Bond | ALAFX vs HOBEX |
To view more results, upgrade your current subscription plan.
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for ALAFX, 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 Exxon Mobil Corporation (XOM) (Energy) with a 1Y correlation of -0.25, down from 0.06 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Exxon Mobil Corporation | -0.25 | -0.11 | 0.06 | 84 | Energy | |
| The TJX Companies, Inc. | -0.16 | 0.16 | 0.35 | 83 | Consumer Cyclical | |
| Merck & Co., Inc. | -0.14 | -0.07 | -0.01 | 96 | Healthcare | |
| Visa Inc. | 0.03 | 0.24 | 0.43 | 53 | Financial Services | |
| Amgen Inc. | 0.03 | 0.10 | 0.16 | 80 | Healthcare |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements ALAFX
Add ALAFX to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with ALAFX