Looking to diversify beyond NIE? The mutual funds below have the lowest correlation with NIE — 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 NIE.
Best Diversifiers for NIE
3 mutual funds have low correlation with NIE (below 0.3), 0 of which are negatively correlated. The least correlated is Virtus Stone Harbor Emerging Markets Income Fund (EDF) (Emerging Markets Bonds) with a 1Y correlation of 0.26, roughly unchanged from 0.33 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Virtus Stone Harbor Emerging Markets Income Fund | 0.26 | 0.30 | 0.33 | 57 | Emerging Markets Bonds | NIE vs EDF | |
| Virtus Seix Floating Rate High Income Fund | 0.26 | 0.27 | 0.30 | 97 | Bank Loan | NIE vs SAMBX | |
| The Merger Fund | 0.27 | 0.25 | 0.32 | 97 | Event Driven | NIE vs MERFX | |
| The Covered Bridge Fund | 0.32 | 0.43 | 0.56 | 59 | Derivative Income | NIE vs TCBIX | |
| BlackRock High Equity Income Fund | 0.55 | 0.57 | 0.65 | 64 | Derivative Income | NIE vs BMCIX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from NIE, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to NIE and solid risk/return profiles. The least correlated is DNP Select Income Fund Inc. (DNP) (Financial Services) with a 1Y correlation of 0.19, down from 0.32 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| DNP Select Income Fund Inc. | 0.19 | 0.26 | 0.32 | 93 | Financial Services | |
| BlackRock Science and Technology Term Trust | 0.68 | 0.70 | 0.75 | 93 | Financial Services | |
| Abrdn Total Dynamic Dividend Fund | 0.69 | 0.69 | 0.73 | 87 | Financial Services | |
| BlackRock Science and Technology Trust | 0.77 | 0.72 | 0.78 | 85 | Financial Services |
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