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
7 mutual funds have low correlation with FSMDX (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 0.04, down from 0.16 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | 0.04 | 0.13 | 0.16 | 94 | Inflation-Protected Bonds | FSMDX vs VTAPX | |
| Fidelity Select Energy Portfolio | 0.13 | 0.38 | 0.45 | 79 | Energy Equities | FSMDX vs FSENX | |
| Fidelity Conservative Income Municipal Bond Fund I... | 0.14 | 0.14 | 0.08 | 98 | Municipal Bonds | FSMDX vs FMNDX | |
| Fidelity Floating Rate High Income Fund | 0.20 | 0.29 | 0.34 | 92 | High Yield Bonds | FSMDX vs FFRHX | |
| T. Rowe Price Global Multi-Sector Bond Fund | 0.26 | 0.25 | 0.21 | 87 | Global Bonds | FSMDX vs PRSNX |
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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 -0.12, down from 0.20 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.12 | 0.12 | 0.20 | 69 | Consumer Defensive | |
| The Coca-Cola Company | -0.03 | 0.14 | 0.25 | 66 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.02 | 0.20 | 0.29 | 85 | Energy | |
| BP p.l.c. | 0.00 | 0.22 | 0.31 | 87 | Energy | |
| Chevron Corporation | 0.01 | 0.22 | 0.31 | 83 | Energy |
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