Looking to diversify beyond ANCFX? The mutual funds below have the lowest correlation with ANCFX — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from ANCFX.
Best Diversifiers for ANCFX
10 mutual funds have low correlation with ANCFX (below 0.3), 0 of which are negatively correlated. The least correlated is American High-Income Municipal Bond Fund (AMHIX) (High Yield Muni) with a 1Y correlation of 0.17, roughly unchanged from 0.12 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| American High-Income Municipal Bond Fund | 0.17 | 0.14 | 0.12 | 77 | High Yield Muni | ANCFX vs AMHIX | |
| American Funds Tax Exempt Bond Fund | 0.20 | 0.15 | 0.12 | 70 | Municipal Bonds | ANCFX vs AFTEX | |
| American Funds Limited Term Tax-Exempt Bond Fund | 0.21 | 0.14 | 0.12 | 65 | Municipal Bonds | ANCFX vs LTEBX | |
| American Funds Tax-Exempt Fund of California | 0.22 | 0.15 | 0.12 | 69 | Municipal Bonds | ANCFX vs TAFTX | |
| American Funds Tax-Exempt Preservation Portfolio | 0.22 | 0.16 | 0.11 | 67 | Municipal Bonds | ANCFX vs TEPAX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from ANCFX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to ANCFX and solid risk/return profiles. The least correlated is The Allstate Corporation (ALL) (Financial Services) with a 1Y correlation of -0.05, down from 0.25 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| The Allstate Corporation | -0.05 | 0.11 | 0.25 | 67 | Financial Services | |
| JPMorgan Chase & Co. | 0.46 | 0.47 | 0.57 | 68 | Financial Services | |
| Advanced Micro Devices, Inc. | 0.55 | 0.60 | 0.64 | 97 | Technology | |
| Alphabet Inc. Class A | 0.55 | 0.55 | 0.64 | 96 | Communication Services |
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