Looking to diversify beyond VHYAX? The mutual funds below have the lowest correlation with VHYAX — 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 VHYAX.
Best Diversifiers for VHYAX
7 mutual funds have low correlation with VHYAX (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX) (Inflation-Protected Bonds) with a 1Y correlation of 0.03, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | 0.03 | 0.10 | 0.15 | 94 | Inflation-Protected Bonds | VHYAX vs VTAPX | |
| Fidelity Floating Rate High Income Fund | 0.22 | 0.30 | 0.33 | 92 | High Yield Bonds | VHYAX vs FFRHX | |
| Federated Hermes Equity Income Fund | 0.22 | 0.60 | 0.78 | 53 | Large Cap Value Equities | VHYAX vs LEIFX | |
| Fidelity Select Energy Portfolio | 0.26 | 0.47 | 0.55 | 79 | Energy Equities | VHYAX vs FSENX | |
| Vanguard Short-Term Investment-Grade Fund Admiral ... | 0.26 | 0.16 | 0.13 | 61 | Total Bond Market | VHYAX vs VFSUX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VHYAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VHYAX and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of 0.09, down from 0.38 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | 0.09 | 0.29 | 0.38 | 69 | Consumer Defensive | |
| BP p.l.c. | 0.13 | 0.28 | 0.38 | 87 | Energy | |
| The Coca-Cola Company | 0.13 | 0.30 | 0.42 | 66 | Consumer Defensive | |
| Petróleo Brasileiro S.A. - Petrobras | 0.15 | 0.25 | 0.27 | 86 | Energy | |
| Palo Alto Networks, Inc. | 0.15 | 0.22 | 0.26 | 67 | Technology |
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