Looking to diversify beyond FSMDX? The mutual funds below have the lowest correlation with FSMDX — 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 FSMDX.
Best Diversifiers for FSMDX
4 mutual funds have low correlation with FSMDX (below 0.3), 0 of which are negatively correlated. The least correlated is Fidelity Conservative Income Municipal Bond Fund Institutional Class (FMNDX) (Municipal Bonds) with a 1Y correlation of 0.08, roughly unchanged from 0.08 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Conservative Income Municipal Bond Fund I... | 0.08 | 0.13 | 0.08 | 98 | Municipal Bonds | FSMDX vs FMNDX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.10 | 0.14 | 0.17 | 86 | Inflation-Protected Bonds | FSMDX vs VTAPX | |
| Fidelity Select Energy Portfolio | 0.10 | 0.33 | 0.43 | 87 | Energy Equities | FSMDX vs FSENX | |
| Fidelity Floating Rate High Income Fund | 0.18 | 0.27 | 0.33 | 93 | Bank Loan | FSMDX vs FFRHX | |
| AQR Long-Short Equity Fund Class N | 0.30 | 0.34 | 0.27 | 72 | Long-Short, Actively Managed | FSMDX vs QLENX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from FSMDX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to FSMDX and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.15, down from 0.18 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.15 | 0.09 | 0.18 | 78 | Consumer Defensive | |
| The Coca-Cola Company | -0.10 | 0.12 | 0.25 | 80 | Consumer Defensive | |
| Philip Morris International Inc. | -0.07 | 0.14 | 0.25 | 68 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.07 | 0.16 | 0.28 | 85 | Energy | |
| Chubb Limited | -0.05 | 0.16 | 0.30 | 82 | Financial Services |
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