Looking to diversify beyond PRFDX? The mutual funds below have the lowest correlation with PRFDX — 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 PRFDX.
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 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Market Neutral Fund Investor Shares | -0.13 | -0.06 | 0.03 | 62 | Long-Short | PRFDX vs VMNFX | |
| BlackRock Global Long/Short Equity Fund Class I | 0.20 | 0.10 | 0.08 | 92 | Long-Short | PRFDX vs BDMIX | |
| Fidelity Floating Rate High Income Fund | 0.20 | 0.30 | 0.34 | 92 | High Yield Bonds | PRFDX vs FFRHX | |
| Federated Hermes Equity Income Fund | 0.22 | 0.59 | 0.79 | 53 | Large Cap Value Equities | PRFDX vs LEIFX | |
| T. Rowe Price Spectrum Income Fund | 0.33 | 0.40 | 0.48 | 86 | Multisector Bonds | PRFDX vs RPSIX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from PRFDX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to PRFDX and solid risk/return profiles. The least correlated is Energy Transfer LP (ET) (Energy) with a 1Y correlation of 0.08, down from 0.47 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Energy Transfer LP | 0.08 | 0.35 | 0.47 | 69 | Energy | |
| NVIDIA Corporation | 0.12 | 0.18 | 0.34 | 78 | Technology | |
| Black Stone Minerals, L.P. | 0.13 | 0.27 | 0.37 | 54 | Energy | |
| Johnson & Johnson | 0.20 | 0.32 | 0.36 | 92 | Healthcare |
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