Looking to diversify beyond CEF? The mutual funds below have historically moved differently from CEF, 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 CEF
2 mutual funds have low correlation with CEF (below 0.3), 1 of which are negatively correlated.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Victory Pioneer Cat Bond Fund Class Y | -0.06 | — | — | 100 | Nontraditional Bonds | CEF vs CBYYX | |
| Columbia Seligman Premium Technology Growth Fund | 0.29 | 0.19 | 0.16 | 88 | Technology Equities, Options Trading, Actively Managed | CEF vs STK | |
| PIMCO Commodity Real Return Strategy Fund | 0.36 | 0.46 | 0.44 | 69 | Commodities | CEF vs PCRIX | |
| U.S. Global Investors World Precious Minerals Fund | 0.80 | 0.74 | 0.72 | 56 | Precious Metals | CEF vs UNWPX |
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for CEF, 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 CareTrust REIT, Inc. (CTRE) (Real Estate) with a 1Y correlation of -0.02, down from 0.09 over 5 years.
How candidates are selected| 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 | 0.06 | 0.12 | 0.14 | 77 | Real Estate | |
| Apple Inc | 0.15 | 0.10 | 0.08 | 89 | Technology | |
| NVIDIA Corporation | 0.20 | 0.10 | 0.12 | 56 | Technology | |
| Seagate Technology plc | 0.28 | 0.19 | 0.17 | 99 | Technology |
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