Looking to diversify beyond VHCAX? The mutual funds below have the lowest correlation with VHCAX — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from VHCAX.
Best Diversifiers for VHCAX
0 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 0.30, up from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Investment-Grade Fund Admiral ... | 0.30 | 0.16 | 0.15 | 60 | Total Bond Market | VHCAX vs VFSUX | |
| Baron Partners Fund | 0.51 | 0.61 | 0.71 | 72 | Large Cap Growth Equities | VHCAX vs BPTRX | |
| Vanguard Wellesley Income Fund Admiral Shares | 0.58 | 0.59 | 0.61 | 53 | Diversified Portfolio | VHCAX vs VWIAX | |
| Vanguard Mid-Cap Value Index Fund Admiral Shares | 0.59 | 0.68 | 0.74 | 64 | Mid Cap Value Equities | VHCAX vs VMVAX | |
| Adams Diversified Equity Fund, Inc. | 0.67 | 0.76 | 0.83 | 67 | Large Cap Blend Equities | VHCAX vs ADX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VHCAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VHCAX and solid risk/return profiles. The least correlated is Walmart Inc. (WMT) (Consumer Defensive) with a 1Y correlation of -0.09, down from 0.22 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Walmart Inc. | -0.09 | 0.13 | 0.22 | 69 | Consumer Defensive | |
| AstraZeneca PLC | 0.21 | 0.27 | 0.29 | 74 | Healthcare | |
| Apple Inc | 0.38 | 0.42 | 0.52 | 88 | Technology | |
| General Motors Company | 0.42 | 0.40 | 0.51 | 89 | Consumer Cyclical | |
| Advanced Micro Devices, Inc. | 0.52 | 0.53 | 0.59 | 97 | Technology |
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