Looking to diversify beyond FOF? The mutual funds below have historically moved differently from FOF, 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 FOF
12 mutual funds have low correlation with FOF (below 0.3), 2 of which are negatively correlated. The least correlated is GQG Partners US Quality Dividend Income Fund (GQHPX) (Quality Factor) with a 1Y correlation of -0.08, down from 0.29 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| GQG Partners US Quality Dividend Income Fund | -0.08 | 0.18 | 0.29 | 62 | Quality Factor, Large Cap Value Equities | FOF vs GQHPX | |
| Voya Corporate Leaders Trust Fund | -0.04 | 0.20 | 0.30 | 93 | Large Cap Value Equities | FOF vs LEXCX | |
| Federated Hermes Equity Income Fund | 0.11 | 0.28 | 0.39 | 72 | Dividend, Large Cap Value Equities | FOF vs LEIFX | |
| Buffalo Flexible Income Fund | 0.12 | 0.29 | 0.37 | 87 | Large Cap Value Equities | FOF vs BUFBX | |
| Federated Hermes Strategic Value Dividend Fund | 0.17 | 0.29 | 0.35 | 94 | Large Cap Value Equities | FOF vs SVAIX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for FOF, 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 DNP Select Income Fund Inc. (DNP) (Financial Services) with a 1Y correlation of 0.16, down from 0.29 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| DNP Select Income Fund Inc. | 0.16 | 0.24 | 0.29 | 89 | Financial Services | |
| Strategy Inc Variable Rate Series A Perpetual Stre... | 0.18 | — | — | 57 | Technology | |
| Cohen & Steers Quality Income Realty Fund, Inc. | 0.37 | 0.43 | 0.47 | 66 | Financial Services |
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