Looking to diversify beyond VDIGX? The mutual funds below have historically moved differently from VDIGX, 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 VDIGX
43 mutual funds have low correlation with VDIGX (below 0.3), 6 of which are negatively correlated. The least correlated is Vanguard Market Neutral Fund Institutional Shares (VMNIX) (Long-Short) with a 1Y correlation of -0.15, roughly unchanged from -0.06 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Market Neutral Fund Institutional Shares | -0.15 | -0.11 | -0.06 | 97 | Long-Short | VDIGX vs VMNIX | |
| Vanguard Market Neutral Fund Investor Shares | -0.14 | -0.10 | -0.06 | 97 | Long-Short | VDIGX vs VMNFX | |
| AQR Managed Futures Strategy Fund Class N | -0.11 | -0.09 | -0.19 | 89 | Systematic Trend | VDIGX vs AQMNX | |
| Vanguard Commodity Strategy Fund Admiral Shares | -0.09 | -0.01 | 0.11 | 69 | Commodities | VDIGX vs VCMDX | |
| Vanguard Energy Index Fund Admiral Shares | -0.07 | 0.17 | 0.28 | 71 | Energy Equities | VDIGX vs VENAX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VDIGX, 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 Occidental Petroleum Corporation (OXY) (Energy) with a 1Y correlation of -0.16, down from 0.17 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Occidental Petroleum Corporation | -0.16 | 0.07 | 0.17 | 68 | Energy | |
| BP p.l.c. | -0.14 | 0.05 | 0.17 | 83 | Energy | |
| Petróleo Brasileiro S.A. - Petrobras | -0.14 | 0.09 | 0.12 | 84 | Energy | |
| Chevron Corporation | -0.13 | 0.11 | 0.24 | 79 | Energy | |
| Devon Energy Corporation | -0.13 | 0.11 | 0.24 | 78 | Energy |
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