Looking to diversify beyond FAFRX? The mutual funds below have historically moved differently from FAFRX, 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 FAFRX
7 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.
How candidates are selected| 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 | 93 | Bank Loan | FAFRX vs XPTFX | |
| RiverPark Floating Rate CMBS Fund | 0.08 | 0.08 | 0.15 | 100 | Bank Loan | FAFRX vs RCRIX | |
| Cliffwater Corporate Lending Fund Class I Shares | 0.11 | 0.13 | 0.17 | 100 | Bank Loan, High Yield Bonds | FAFRX vs CCLFX | |
| Calamos Aksia Alternative Credit and Income Fund C... | 0.13 | 0.12 | 0.12 | 99 | Bank Loan | FAFRX vs CAPIX | |
| Franklin Income Fund Class A1 | 0.14 | 0.26 | 0.31 | 87 | Diversified Portfolio | FAFRX vs FKINX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for FAFRX, 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 BlackRock Science and Technology Term Trust (BSTZ) (Financial Services) with a 1Y correlation of 0.17, roughly unchanged from 0.24 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| BlackRock Science and Technology Term Trust | 0.17 | 0.19 | 0.24 | 87 | Financial Services |
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