Looking to diversify beyond VGCAX? The mutual funds below have historically moved differently from VGCAX, 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 VGCAX
3 mutual funds have low correlation with VGCAX (below 0.3), 0 of which are negatively correlated. The least correlated is Fidelity Flex Conservative Income Bond Fund (FJTDX) (Total Bond Market) with a 1Y correlation of 0.13, roughly unchanged from 0.21 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Flex Conservative Income Bond Fund | 0.13 | 0.17 | 0.21 | 100 | Total Bond Market | VGCAX vs FJTDX | |
| JPMorgan Strategic Income Opportunities Fund Class... | 0.14 | -0.23 | -0.28 | 99 | Total Bond Market | VGCAX vs JSOSX | |
| Fidelity Conservative Income Bond Institutional Cl... | 0.14 | 0.25 | 0.25 | 100 | Ultrashort Bond | VGCAX vs FCNVX | |
| Vanguard Ultra-Short-Term Bond Fund Investor Share... | 0.35 | 0.44 | 0.51 | 99 | Total Bond Market | VGCAX vs VUBFX | |
| Vanguard Explorer Fund Admiral Shares | 0.41 | 0.31 | 0.25 | 52 | Small Cap Growth Equities | VGCAX vs VEXRX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VGCAX, 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 Berkshire Hathaway Inc. (BRK-B) (Financial Services) with a 1Y correlation of 0.08, roughly unchanged from 0.09 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Berkshire Hathaway Inc. | 0.08 | 0.11 | 0.09 | 61 | Financial Services | |
| Rivian Automotive, Inc. | 0.19 | 0.18 | 0.17 | 56 | Consumer Cyclical | |
| Airbnb, Inc. | 0.28 | 0.12 | 0.10 | 60 | Consumer Cyclical |
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