Looking to diversify beyond VCMDX? The mutual funds below have historically moved differently from VCMDX, 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 VCMDX
32 mutual funds have low correlation with VCMDX (below 0.3), 9 of which are negatively correlated. The least correlated is Vanguard Short-Term Investment-Grade Fund Admiral Shares (VFSUX) (Total Bond Market) with a 1Y correlation of -0.22, down from 0.06 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Investment-Grade Fund Admiral ... | -0.22 | -0.01 | 0.06 | 54 | Total Bond Market | VCMDX vs VFSUX | |
| DFA U.S. Micro Cap Portfolio | -0.04 | 0.08 | 0.17 | 88 | Small Cap Blend Equities | VCMDX vs DFSCX | |
| Vanguard Small-Cap Value Index Fund Admiral Shares | -0.04 | 0.08 | 0.19 | 76 | Small Cap Value Equities | VCMDX vs VSIAX | |
| Vanguard Windsor II Fund Admiral Shares | -0.03 | 0.09 | 0.20 | 81 | Large Cap Value Equities | VCMDX vs VWNAX | |
| Vanguard Balanced Index Fund Admiral Shares | -0.01 | 0.09 | 0.17 | 59 | Diversified Portfolio | VCMDX vs VBIAX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VCMDX, 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 NVIDIA Corporation (NVDA) (Technology) with a 1Y correlation of 0.06, roughly unchanged from 0.11 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| NVIDIA Corporation | 0.06 | 0.07 | 0.11 | 61 | Technology | |
| Royal Gold, Inc. | 0.24 | 0.31 | 0.30 | 66 | Basic Materials |
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