Looking to diversify beyond VFFVX? The mutual funds below have historically moved differently from VFFVX, 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 VFFVX
3 mutual funds have low correlation with VFFVX (below 0.3), 1 of which are negatively correlated. The least correlated is Fidelity Select Energy Portfolio (FSENX) (Energy Equities) with a 1Y correlation of -0.07, down from 0.35 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.07 | 0.21 | 0.35 | 88 | Energy Equities | VFFVX vs FSENX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.11 | 0.15 | 0.19 | 87 | Inflation-Protected Bonds | VFFVX vs VTAPX | |
| Fidelity Floating Rate High Income Fund | 0.27 | 0.30 | 0.36 | 94 | Bank Loan | VFFVX vs FFRHX | |
| AQR Long-Short Equity Fund | 0.45 | 0.44 | 0.32 | 80 | Long-Short | VFFVX vs QLEIX | |
| AQR Long-Short Equity Fund Class N | 0.45 | 0.44 | 0.33 | 78 | Long-Short, Actively Managed | VFFVX vs QLENX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VFFVX, 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 Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.27, down from 0.12 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.27 | -0.01 | 0.12 | 64 | Consumer Defensive | |
| Chevron Corporation | -0.21 | 0.06 | 0.23 | 76 | Energy | |
| Exxon Mobil Corporation | -0.20 | 0.05 | 0.21 | 85 | Energy | |
| Occidental Petroleum Corporation | -0.19 | 0.06 | 0.22 | 68 | Energy | |
| The Coca-Cola Company | -0.19 | 0.04 | 0.21 | 86 | Consumer Defensive |
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