Looking to diversify beyond VHCAX? The mutual funds below have historically moved differently from VHCAX, 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 VHCAX
1 mutual funds have low correlation with VHCAX (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Investment-Grade Fund Admiral Shares (VFSUX) (Total Bond Market) with a 1Y correlation of 0.29, up from 0.15 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Investment-Grade Fund Admiral ... | 0.29 | 0.16 | 0.15 | 74 | Total Bond Market | VHCAX vs VFSUX | |
| Vanguard Health Care Fund Admiral Shares | 0.39 | 0.55 | 0.64 | 76 | Health & Biotech Equities | VHCAX vs VGHAX | |
| Vanguard Mid-Cap Value Index Fund Admiral Shares | 0.49 | 0.64 | 0.72 | 89 | Mid Cap Value Equities | VHCAX vs VMVAX | |
| Vanguard Wellesley Income Fund Admiral Shares | 0.50 | 0.57 | 0.60 | 70 | Diversified Portfolio | VHCAX vs VWIAX | |
| Vanguard Equity Income Fund Admiral Shares | 0.52 | 0.65 | 0.71 | 84 | Dividend, Large Cap Value Equities | VHCAX vs VEIRX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VHCAX, 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 Walmart Inc. (WMT) (Consumer Defensive) with a 1Y correlation of -0.14, down from 0.20 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Walmart Inc. | -0.14 | 0.09 | 0.20 | 62 | Consumer Defensive | |
| AstraZeneca PLC | 0.18 | 0.25 | 0.28 | 66 | Healthcare | |
| Apple Inc | 0.29 | 0.41 | 0.56 | 89 | Technology | |
| General Motors Company | 0.42 | 0.45 | 0.55 | 92 | Consumer Cyclical | |
| AMETEK, Inc. | 0.57 | 0.57 | 0.63 | 82 | Industrials |
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