Looking to diversify beyond INDEX? The mutual funds below have historically moved differently from INDEX, 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 INDEX
3 mutual funds have low correlation with INDEX (below 0.3), 0 of which are negatively correlated. The least correlated is PIMCO Commodity Real Return Strategy Fund (PCRIX) (Commodities) with a 1Y correlation of 0.01, down from 0.19 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| PIMCO Commodity Real Return Strategy Fund | 0.01 | 0.09 | 0.19 | 69 | Commodities | INDEX vs PCRIX | |
| BlackRock New Jersey Municipal Bond Fund | 0.19 | 0.12 | 0.10 | 77 | Municipal Bonds | INDEX vs MANJX | |
| USAA Tax Exempt Long Term Fund | 0.25 | 0.14 | 0.10 | 83 | Municipal Bonds | INDEX vs USTEX | |
| Goldman Sachs Strategic Volatility Premium Fund | 0.34 | 0.15 | 0.13 | 97 | Large Cap Blend Equities | INDEX vs SVPFX | |
| Federated Hermes MDT All Cap Core Fund | 0.46 | 0.62 | 0.78 | 53 | Large Cap Blend Equities | INDEX vs QIACX |
To view more results, upgrade your current subscription plan.
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for INDEX, 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 The New York Times Company (NYT) (Communication Services) with a 1Y correlation of 0.04, down from 0.43 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| The New York Times Company | 0.04 | 0.30 | 0.43 | 84 | Communication Services | |
| Berkshire Hathaway Inc. | 0.06 | 0.32 | 0.52 | 61 | Financial Services | |
| Barclays PLC | 0.64 | 0.53 | 0.57 | 79 | Financial Services |
Build a portfolio that complements INDEX
Add INDEX to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with INDEX