Looking to diversify beyond FSDAX? The mutual funds below have the lowest correlation with FSDAX — 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 FSDAX.
Best Diversifiers for FSDAX
7 mutual funds have low correlation with FSDAX (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX) (Inflation-Protected Bonds) with a 1Y correlation of 0.12, roughly unchanged from 0.13 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | 0.12 | 0.08 | 0.13 | 84 | Inflation-Protected Bonds | FSDAX vs VTAPX | |
| Fidelity Floating Rate High Income Fund | 0.16 | 0.21 | 0.27 | 92 | Bank Loan | FSDAX vs FFRHX | |
| Fidelity Global Commodity Stock Fund | 0.16 | 0.32 | 0.47 | 68 | Commodities | FSDAX vs FFGCX | |
| AQR Long-Short Equity Fund | 0.27 | 0.33 | 0.32 | 57 | Long-Short | FSDAX vs QLEIX | |
| AQR Long-Short Equity Fund Class N | 0.28 | 0.33 | 0.32 | 54 | Long-Short, Actively Managed | FSDAX vs QLENX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from FSDAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to FSDAX and solid risk/return profiles. The least correlated is Verizon Communications Inc. (VZ) (Communication Services) with a 1Y correlation of -0.15, down from 0.13 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Verizon Communications Inc. | -0.15 | 0.01 | 0.13 | 66 | Communication Services | |
| Exxon Mobil Corporation | -0.14 | 0.10 | 0.25 | 72 | Energy | |
| ConocoPhillips Company | -0.13 | 0.11 | 0.27 | 65 | Energy | |
| Altria Group, Inc. | -0.12 | 0.01 | 0.17 | 72 | Consumer Defensive | |
| PepsiCo, Inc. | -0.09 | 0.06 | 0.17 | 61 | Consumer Defensive |
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