Looking to diversify beyond PCBIX? The mutual funds below have historically moved differently from PCBIX, 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 PCBIX
1 mutual funds have low correlation with PCBIX (below 0.3), 0 of which are negatively correlated. The least correlated is Principal Tax-Exempt Bond Fund (PTEAX) (Municipal Bonds) with a 1Y correlation of 0.29, up from 0.16 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Principal Tax-Exempt Bond Fund | 0.29 | 0.20 | 0.16 | 70 | Municipal Bonds | PCBIX vs PTEAX | |
| Principal Opportunistic Municipal Fund | 0.30 | 0.18 | 0.15 | 91 | High Yield Muni | PCBIX vs PMOAX | |
| Principal California Municipal Fund | 0.32 | 0.20 | 0.15 | 71 | Municipal Bonds | PCBIX vs SRCMX | |
| Principal Diversified Select Real Asset Fund | 0.35 | 0.55 | 0.63 | 97 | Global Allocation | PCBIX vs PDSYX | |
| Principal Capital Securities Fund | 0.35 | 0.37 | 0.35 | 77 | Preferred Stock | PCBIX vs PCSFX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for PCBIX, 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 AbbVie Inc. (ABBV) (Healthcare) with a 1Y correlation of 0.07, down from 0.23 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| AbbVie Inc. | 0.07 | 0.22 | 0.23 | 81 | Healthcare | |
| Berkshire Hathaway Inc. | 0.28 | 0.47 | 0.55 | 61 | Financial Services |
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