Looking to diversify beyond PSSMX? The mutual funds below have historically moved differently from PSSMX, 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 PSSMX
4 mutual funds have low correlation with PSSMX (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 0.18, roughly unchanged from 0.10 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 | 0.18 | 0.14 | 0.10 | 55 | Municipal Bonds | PSSMX vs PTEAX | |
| Principal Opportunistic Municipal Fund | 0.23 | 0.13 | 0.10 | 78 | High Yield Muni | PSSMX vs PMOAX | |
| Principal California Municipal Fund | 0.25 | 0.16 | 0.11 | 54 | Municipal Bonds | PSSMX vs SRCMX | |
| Principal Short-Term Income Fund | 0.29 | 0.16 | 0.12 | 69 | Short-Term Bond | PSSMX vs SRHQX | |
| Principal Capital Securities Fund | 0.41 | 0.35 | 0.33 | 74 | Preferred Stock | PSSMX vs PCSFX |
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