Looking to diversify beyond VDADX? The mutual funds below have the lowest correlation with VDADX — 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 VDADX.
Best Diversifiers for VDADX
9 mutual funds have low correlation with VDADX (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX) (Inflation-Protected Bonds) with a 1Y correlation of 0.04, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | 0.04 | 0.10 | 0.15 | 90 | Inflation-Protected Bonds | VDADX vs VTAPX | |
| Fidelity Select Energy Portfolio | 0.07 | 0.27 | 0.35 | 62 | Energy Equities | VDADX vs FSENX | |
| Fidelity Floating Rate High Income Fund | 0.20 | 0.28 | 0.31 | 93 | Bank Loan | VDADX vs FFRHX | |
| Vanguard Energy Fund Admiral Shares | 0.22 | 0.39 | 0.48 | 78 | Energy Equities | VDADX vs VGELX | |
| Vanguard Short-Term Treasury Index Fund Admiral Sh... | 0.24 | 0.10 | 0.10 | 90 | Government Bonds | VDADX vs VSBSX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VDADX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VDADX and solid risk/return profiles. The least correlated is Occidental Petroleum Corporation (OXY) (Energy) with a 1Y correlation of -0.06, down from 0.22 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Occidental Petroleum Corporation | -0.06 | 0.14 | 0.22 | 62 | Energy | |
| Devon Energy Corporation | -0.04 | 0.17 | 0.26 | 72 | Energy | |
| Altria Group, Inc. | -0.03 | 0.17 | 0.28 | 81 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.02 | 0.17 | 0.27 | 75 | Energy | |
| Chevron Corporation | -0.02 | 0.19 | 0.29 | 70 | Energy |
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Build a portfolio that complements VDADX
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