Looking to diversify beyond VDIGX? The mutual funds below have the lowest correlation with VDIGX — 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 VDIGX.
Best Diversifiers for VDIGX
43 mutual funds have low correlation with VDIGX (below 0.3), 4 of which are negatively correlated. The least correlated is Vanguard Market Neutral Fund Institutional Shares (VMNIX) (Long-Short) with a 1Y correlation of -0.11, roughly unchanged from -0.04 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Market Neutral Fund Institutional Shares | -0.11 | -0.10 | -0.04 | 63 | Long-Short | VDIGX vs VMNIX | |
| Vanguard Market Neutral Fund Investor Shares | -0.09 | -0.09 | -0.04 | 62 | Long-Short | VDIGX vs VMNFX | |
| Vanguard Commodity Strategy Fund Admiral Shares | -0.04 | 0.04 | 0.14 | 70 | Commodities | VDIGX vs VCMDX | |
| AQR Managed Futures Strategy Fund Class N | -0.02 | -0.07 | -0.16 | 89 | Systematic Trend | VDIGX vs AQMNX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.00 | 0.12 | 0.17 | 94 | Inflation-Protected Bonds | VDIGX vs VTSPX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VDIGX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VDIGX and solid risk/return profiles. The least correlated is BP p.l.c. (BP) (Energy) with a 1Y correlation of -0.07, down from 0.19 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| BP p.l.c. | -0.07 | 0.09 | 0.19 | 87 | Energy | |
| Petróleo Brasileiro S.A. - Petrobras | -0.05 | 0.12 | 0.14 | 86 | Energy | |
| Chevron Corporation | -0.05 | 0.16 | 0.24 | 83 | Energy | |
| Exxon Mobil Corporation | -0.04 | 0.14 | 0.22 | 85 | Energy | |
| ConocoPhillips Company | -0.03 | 0.13 | 0.21 | 76 | Energy |
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