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
8 mutual funds have low correlation with VDADX (below 0.3), 1 of which are negatively correlated. The least correlated is T. Rowe Price Dynamic Credit Fund (RPIDX) (Nontraditional Bonds) with a 1Y correlation of -0.07, roughly unchanged from -0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| T. Rowe Price Dynamic Credit Fund | -0.07 | 0.05 | -0.01 | 76 | Nontraditional Bonds | VDADX vs RPIDX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.03 | 0.10 | 0.15 | 84 | Inflation-Protected Bonds | VDADX vs VTAPX | |
| Vanguard Energy Fund Admiral Shares | 0.22 | 0.39 | 0.48 | 62 | Energy Equities | VDADX vs VGELX | |
| Fidelity Floating Rate High Income Fund | 0.23 | 0.29 | 0.31 | 92 | Bank Loan | VDADX vs FFRHX | |
| AB Municipal Income Fund National Portfolio | 0.25 | 0.16 | 0.12 | 68 | Municipal Bonds | VDADX vs ALTHX |
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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 Exxon Mobil Corporation (XOM) (Energy) with a 1Y correlation of -0.03, down from 0.24 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Exxon Mobil Corporation | -0.03 | 0.17 | 0.24 | 72 | Energy | |
| Altria Group, Inc. | -0.02 | 0.17 | 0.26 | 72 | Consumer Defensive | |
| Chevron Corporation | -0.02 | 0.18 | 0.26 | 70 | Energy | |
| ConocoPhillips Company | -0.02 | 0.15 | 0.23 | 65 | Energy | |
| Petróleo Brasileiro S.A. - Petrobras | -0.01 | 0.15 | 0.15 | 75 | Energy |
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