Looking to diversify beyond PDT? The mutual funds below have historically moved differently from PDT, 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 PDT
8 mutual funds have low correlation with PDT (below 0.3), 0 of which are negatively correlated. The least correlated is John Hancock California Municipal Bond Fund (TACAX) (Municipal Bonds) with a 1Y correlation of 0.19, roughly unchanged from 0.22 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| John Hancock California Municipal Bond Fund | 0.19 | 0.23 | 0.22 | 68 | Municipal Bonds | PDT vs TACAX | |
| John Hancock High Yield Municipal Bond Fund | 0.20 | 0.22 | 0.22 | 68 | High Yield Muni | PDT vs JHTFX | |
| Federated Hermes Equity Income Fund | 0.21 | 0.36 | 0.47 | 68 | Dividend, Large Cap Value Equities | PDT vs LEIFX | |
| JHancock Municipal Opportunities Fund | 0.22 | 0.21 | 0.20 | 59 | Municipal Bonds | PDT vs TAMBX | |
| Allspring Emerging Markets Equity Income Fund | 0.26 | 0.25 | 0.31 | 68 | Dividend, Emerging Markets Equities | PDT vs EQIIX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for PDT, 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 Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of 0.00, down from 0.23 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | 0.00 | 0.21 | 0.23 | 66 | Consumer Defensive | |
| Plains All American Pipeline, L.P. | 0.06 | 0.24 | 0.33 | 93 | Energy | |
| Energy Transfer LP | 0.08 | 0.24 | 0.31 | 82 | Energy | |
| Enterprise Products Partners L.P. | 0.12 | 0.25 | 0.33 | 89 | Energy | |
| Verizon Communications Inc. | 0.16 | 0.22 | 0.24 | 66 | Communication Services |
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