Looking to diversify beyond CAF? The mutual funds below have historically moved differently from CAF, 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 CAF
3 mutual funds have low correlation with CAF (below 0.3), 0 of which are negatively correlated. The least correlated is Morgan Stanley Pathway Funds Ultra-ShortTerm Fixed Income Fund (TSDUX) (Ultrashort Bond) with a 1Y correlation of 0.09, roughly unchanged from 0.01 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Morgan Stanley Pathway Funds Ultra-ShortTerm Fixed... | 0.09 | 0.04 | 0.01 | 99 | Ultrashort Bond | CAF vs TSDUX | |
| Morgan Stanley Institutional Fund Trust Ultra-Shor... | 0.13 | 0.04 | 0.06 | 100 | Ultrashort Bond | CAF vs MUIIX | |
| Morgan Stanley Emerging Markets Domestic Fund | 0.26 | 0.22 | 0.24 | 57 | Emerging Markets Bonds | CAF vs EDD | |
| Vanguard Pacific Stock Index Fund Admiral Shares | 0.37 | 0.35 | 0.41 | 73 | Asia Pacific Equities | CAF vs VPADX | |
| Vanguard Pacific Stock Index Fund Institutional Sh... | 0.38 | 0.35 | 0.41 | 72 | Asia Pacific Equities | CAF vs VPKIX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for CAF, 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 China Yuchai International Limited (CYD) (Industrials) with a 1Y correlation of 0.29, up from 0.19 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| China Yuchai International Limited | 0.29 | 0.17 | 0.19 | 88 | Industrials | |
| Ping An Insurance Company of China | 0.38 | 0.52 | 0.56 | 59 | Financial Services |
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