Looking to diversify beyond VADDX? The mutual funds below have historically moved differently from VADDX, 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 VADDX
26 mutual funds have low correlation with VADDX (below 0.3), 2 of which are negatively correlated. The least correlated is Invesco Balanced-Risk Commodity Strategy Fund Class A (BRCAX) (Commodities) with a 1Y correlation of -0.04, down from 0.16 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco Balanced-Risk Commodity Strategy Fund Clas... | -0.04 | 0.06 | 0.16 | 77 | Commodities | VADDX vs BRCAX | |
| Invesco Balanced-Risk Commodity Strategy Fund | -0.03 | 0.06 | 0.16 | 78 | Commodities | VADDX vs BRCYX | |
| Invesco Floating Rate ESG Fund | 0.05 | 0.20 | 0.23 | 61 | Bank Loan | VADDX vs AFRAX | |
| Invesco Energy Fund | 0.05 | 0.31 | 0.42 | 73 | Energy Equities | VADDX vs FSTEX | |
| Invesco Short Term Municipal Fund | 0.09 | 0.06 | 0.04 | 76 | Municipal Bonds | VADDX vs ORSYX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VADDX, 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 Berkshire Hathaway Inc. (BRK-B) (Financial Services) with a 1Y correlation of 0.28, down from 0.62 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Berkshire Hathaway Inc. | 0.28 | 0.50 | 0.62 | 61 | Financial Services | |
| Alphabet Inc. Class A | 0.32 | 0.33 | 0.48 | 95 | Communication Services |
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