Looking to diversify beyond HFMDX? The mutual funds below have historically moved differently from HFMDX, 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 HFMDX
5 mutual funds have low correlation with HFMDX (below 0.3), 0 of which are negatively correlated. The least correlated is Hennessy Energy Transition Fund (HNRIX) (Energy Equities) with a 1Y correlation of 0.05, down from 0.53 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Hennessy Energy Transition Fund | 0.05 | 0.34 | 0.53 | 72 | Energy Equities | HFMDX vs HNRIX | |
| Hennessy Total Return Fund | 0.17 | 0.41 | 0.53 | 69 | Diversified Portfolio | HFMDX vs HDOGX | |
| T. Rowe Virginia Tax Free Bond Fund | 0.20 | 0.13 | 0.06 | 91 | Municipal Bonds | HFMDX vs PRVAX | |
| Hennessy Balanced Fund | 0.23 | 0.46 | 0.55 | 89 | Diversified Portfolio | HFMDX vs HBFBX | |
| Hennessy Cornerstone Value Fund | 0.30 | 0.51 | 0.63 | 95 | Large Cap Value Equities | HFMDX vs HFCVX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for HFMDX, 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 Occidental Petroleum Corporation (OXY) (Energy) with a 1Y correlation of -0.12, down from 0.37 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Occidental Petroleum Corporation | -0.12 | 0.18 | 0.37 | 70 | Energy | |
| McKesson Corporation | -0.01 | 0.05 | 0.17 | 67 | Healthcare | |
| Berkshire Hathaway Inc. | 0.08 | 0.32 | 0.46 | 61 | Financial Services | |
| Visa Inc. | 0.17 | 0.32 | 0.40 | 53 | Financial Services | |
| Brookfield Infrastructure Corporation | 0.21 | — | — | 56 | Utilities |
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