Looking to diversify beyond PCBIX? The mutual funds below have the lowest correlation with PCBIX — 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 PCBIX.
Best Diversifiers for PCBIX
4 mutual funds have low correlation with PCBIX (below 0.3), 0 of which are negatively correlated. The least correlated is Principal Opportunistic Municipal Fund (PMOAX) (High Yield Muni) with a 1Y correlation of 0.20, roughly unchanged from 0.14 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Principal Opportunistic Municipal Fund | 0.20 | 0.17 | 0.14 | 62 | High Yield Muni | PCBIX vs PMOAX | |
| Principal Tax-Exempt Bond Fund | 0.20 | 0.18 | 0.14 | 59 | Municipal Bonds | PCBIX vs PTEAX | |
| Principal California Municipal Fund | 0.25 | 0.19 | 0.14 | 63 | Municipal Bonds | PCBIX vs SRCMX | |
| Principal Short-Term Income Fund | 0.28 | 0.20 | 0.16 | 78 | Short-Term Bond | PCBIX vs SRHQX | |
| Principal Capital Securities Fund | 0.33 | 0.33 | 0.33 | 77 | Preferred Stock/Convertible Bonds | PCBIX vs PCSFX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from PCBIX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to PCBIX and solid risk/return profiles. The least correlated is AbbVie Inc. (ABBV) (Healthcare) with a 1Y correlation of 0.09, down from 0.23 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| AbbVie Inc. | 0.09 | 0.21 | 0.23 | 62 | Healthcare |
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