Looking to diversify beyond PRFDX? The mutual funds below have historically moved differently from PRFDX, 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 PRFDX
4 mutual funds have low correlation with PRFDX (below 0.3), 1 of which are negatively correlated. The least correlated is Vanguard Market Neutral Fund Investor Shares (VMNFX) (Long-Short) with a 1Y correlation of -0.13, down from 0.01 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Market Neutral Fund Investor Shares | -0.13 | -0.07 | 0.01 | 97 | Long-Short | PRFDX vs VMNFX | |
| Fidelity Floating Rate High Income Fund | 0.17 | 0.28 | 0.33 | 95 | Bank Loan | PRFDX vs FFRHX | |
| BlackRock Global Equity Market Neutral Fund Class ... | 0.20 | 0.09 | 0.07 | 97 | Equity Market Neutral | PRFDX vs BDMIX | |
| GQG Partners US Quality Dividend Income Fund | 0.28 | 0.58 | 0.70 | 62 | Quality Factor, Large Cap Value Equities | PRFDX vs GQHPX | |
| Federated Hermes Equity Income Fund | 0.34 | 0.57 | 0.77 | 72 | Dividend, Large Cap Value Equities | PRFDX vs LEIFX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for PRFDX, 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 Black Stone Minerals, L.P. (BSM) (Energy) with a 1Y correlation of 0.05, down from 0.34 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Black Stone Minerals, L.P. | 0.05 | 0.24 | 0.34 | 81 | Energy | |
| Energy Transfer LP | 0.07 | 0.32 | 0.45 | 81 | Energy | |
| NVIDIA Corporation | 0.15 | 0.19 | 0.35 | 56 | Technology | |
| Johnson & Johnson | 0.15 | 0.31 | 0.34 | 97 | Healthcare | |
| Realty Income Corporation | 0.27 | 0.37 | 0.43 | 77 | Real Estate |
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