Looking to diversify beyond CEF? The mutual funds below have the lowest correlation with CEF — 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 CEF.
Best Diversifiers for CEF
1 mutual funds have low correlation with CEF (below 0.3), 0 of which are negatively correlated. The least correlated is Columbia Seligman Premium Technology Growth Closed Fund (STK) (Technology Equities) with a 1Y correlation of 0.26, up from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Columbia Seligman Premium Technology Growth Closed... | 0.26 | 0.18 | 0.15 | 91 | Technology Equities | CEF vs STK | |
| U.S. Global Investors World Precious Minerals Fund | 0.78 | 0.73 | 0.71 | 56 | Precious Metals | CEF vs UNWPX |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from CEF, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to CEF and solid risk/return profiles. The least correlated is CareTrust REIT, Inc. (CTRE) (Real Estate) with a 1Y correlation of -0.02, down from 0.09 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| CareTrust REIT, Inc. | -0.02 | 0.09 | 0.09 | 84 | Real Estate | |
| Realty Income Corporation | 0.10 | 0.13 | 0.15 | 74 | Real Estate | |
| NVIDIA Corporation | 0.17 | 0.11 | 0.11 | 65 | Technology | |
| Apple Inc | 0.17 | 0.11 | 0.09 | 91 | Technology | |
| Seagate Technology plc | 0.24 | 0.17 | 0.16 | 99 | Technology |
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