Looking to diversify beyond FAFRX? The mutual funds below have the lowest correlation with FAFRX — 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 FAFRX.
Best Diversifiers for FAFRX
5 mutual funds have low correlation with FAFRX (below 0.3), 1 of which are negatively correlated. The least correlated is Federated Hermes Project and Trade Finance Tender Fund (XPTFX) (Bank Loan) with a 1Y correlation of -0.15, down from 0.05 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Federated Hermes Project and Trade Finance Tender ... | -0.15 | -0.03 | 0.05 | 84 | Bank Loan | FAFRX vs XPTFX | |
| RiverPark Floating Rate CMBS Fund | 0.08 | 0.09 | 0.14 | 100 | Bank Loan | FAFRX vs RCRIX | |
| Calamos Aksia Alternative Credit and Income Fund C... | 0.11 | 0.12 | 0.12 | 98 | Bank Loan | FAFRX vs CAPIX | |
| Franklin Income Fund Class A1 | 0.20 | 0.29 | 0.31 | 84 | Diversified Portfolio | FAFRX vs FKINX | |
| Franklin Income Fund Advisor Class | 0.20 | 0.26 | 0.31 | 89 | Diversified Portfolio | FAFRX vs FRIAX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from FAFRX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to FAFRX and solid risk/return profiles. The least correlated is BlackRock Science and Technology Trust II (BSTZ) (Financial Services) with a 1Y correlation of 0.19, roughly unchanged from 0.24 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| BlackRock Science and Technology Trust II | 0.19 | 0.21 | 0.24 | 96 | Financial Services |
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