Looking to diversify beyond EDD? The mutual funds below have the lowest correlation with EDD — 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 EDD.
Best Diversifiers for EDD
8 mutual funds have low correlation with EDD (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 0.06, up from -0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Morgan Stanley Pathway Funds Ultra-ShortTerm Fixed... | 0.06 | -0.03 | -0.06 | 97 | Ultrashort Bond | EDD vs TSDUX | |
| Morgan Stanley Institutional Fund Trust Ultra-Shor... | 0.09 | 0.03 | 0.03 | 99 | Ultrashort Bond | EDD vs MUIIX | |
| Ashmore Emerging Markets Corporate Income Fund | 0.16 | 0.20 | 0.22 | 62 | Emerging Markets Bonds | EDD vs EMCIX | |
| Morgan Stanley Pathway Funds Municipal Bond Fund | 0.22 | 0.20 | 0.18 | 61 | Municipal Bonds | EDD vs TMUUX | |
| Morgan Stanley China A Share Fund | 0.22 | 0.21 | 0.23 | 83 | China Equities | EDD vs CAF |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from EDD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to EDD and solid risk/return profiles. The least correlated is Trinity Capital Inc. (TRIN) (Financial Services) with a 1Y correlation of 0.16, roughly unchanged from 0.24 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Trinity Capital Inc. | 0.16 | 0.19 | 0.24 | 80 | Financial Services | |
| Reaves Utility Income Trust | 0.16 | 0.24 | 0.29 | 78 | Financial Services | |
| Capital Southwest Corporation | 0.19 | 0.21 | 0.26 | 76 | Financial Services |
Build a portfolio that complements EDD
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