Looking to diversify beyond HFMDX? The mutual funds below have the lowest correlation with HFMDX — 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 HFMDX.
Best Diversifiers for HFMDX
2 mutual funds have low correlation with HFMDX (below 0.3), 0 of which are negatively correlated. The least correlated is T. Rowe Virginia Tax Free Bond Fund (PRVAX) (Municipal Bonds) with a 1Y correlation of 0.18, up from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| T. Rowe Virginia Tax Free Bond Fund | 0.18 | 0.12 | 0.06 | 92 | Municipal Bonds | HFMDX vs PRVAX | |
| Hennessy Balanced Fund | 0.27 | 0.47 | 0.56 | 79 | Diversified Portfolio | HFMDX vs HBFBX | |
| Permanent Portfolio Versatile Bond Portfolio | 0.36 | 0.31 | 0.23 | 84 | Short-Term Bond | HFMDX vs PRVBX | |
| Hennessy Cornerstone Value Fund | 0.36 | 0.52 | 0.65 | 87 | Large Cap Value Equities | HFMDX vs HFCVX | |
| Hennessy Japan Fund | 0.47 | 0.51 | 0.52 | 51 | Japan Equities, Asia Pacific Equities | HFMDX vs HJPNX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from HFMDX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to HFMDX and solid risk/return profiles. The least correlated is Occidental Petroleum Corporation (OXY) (Energy) with a 1Y correlation of -0.08, down from 0.38 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Occidental Petroleum Corporation | -0.08 | 0.20 | 0.38 | 60 | Energy | |
| McKesson Corporation | 0.03 | 0.06 | 0.18 | 58 | Healthcare | |
| CrowdStrike Holdings, Inc. | 0.24 | 0.37 | 0.38 | 75 | Technology | |
| NVIDIA Corporation | 0.29 | 0.38 | 0.46 | 69 | Technology | |
| Apple Inc | 0.34 | 0.33 | 0.43 | 90 | Technology |
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