Looking to diversify beyond VFWPX? The mutual funds below have historically moved differently from VFWPX, 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 VFWPX
2 mutual funds have low correlation with VFWPX (below 0.3), 2 of which are negatively correlated. The least correlated is AQR Style Premia Alternative Fund Class N (QSPNX) (Multistrategy) with a 1Y correlation of -0.13, roughly unchanged from -0.15 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| AQR Style Premia Alternative Fund Class N | -0.13 | -0.13 | -0.15 | 88 | Multistrategy | VFWPX vs QSPNX | |
| Victory Pioneer Cat Bond Fund Class Y | -0.02 | — | — | 100 | Nontraditional Bonds | VFWPX vs CBYYX | |
| AQR Alternative Risk Premia Fund Class N | 0.33 | 0.18 | 0.00 | 98 | Multistrategy | VFWPX vs QRPNX | |
| Federated Hermes International Strategic Value Div... | 0.41 | 0.55 | 0.67 | 88 | Foreign Large Cap Equities | VFWPX vs IVFIX | |
| Goldman Sachs GQG Partners International Opportuni... | 0.44 | 0.70 | 0.79 | 53 | Foreign Large Cap Equities | VFWPX vs GSINX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VFWPX, 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 Annaly Capital Management, Inc. (NLY) (Real Estate) with a 1Y correlation of 0.43, down from 0.56 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Annaly Capital Management, Inc. | 0.43 | 0.51 | 0.56 | 79 | Real Estate | |
| AGNC Investment Corp. | 0.51 | 0.53 | 0.56 | 78 | Real Estate |
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