Looking to diversify beyond VLCAX? The mutual funds below have historically moved differently from VLCAX, 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 VLCAX
5 mutual funds have low correlation with VLCAX (below 0.3), 1 of which are negatively correlated. The least correlated is Fidelity Select Energy Portfolio (FSENX) (Energy Equities) with a 1Y correlation of -0.08, down from 0.31 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.08 | 0.18 | 0.31 | 87 | Energy Equities | VLCAX vs FSENX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.06 | 0.09 | 0.14 | 91 | Inflation-Protected Bonds | VLCAX vs VTAPX | |
| Vanguard Short-Term Treasury Index Fund Admiral Sh... | 0.24 | 0.08 | 0.08 | 93 | Government Bonds | VLCAX vs VSBSX | |
| DFA Global Real Estate Securities Portfolio | 0.28 | 0.46 | 0.59 | 50 | REIT | VLCAX vs DFGEX | |
| Fidelity Floating Rate High Income Fund | 0.30 | 0.31 | 0.33 | 95 | Bank Loan | VLCAX vs FFRHX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VLCAX, 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 Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.28, down from 0.10 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.28 | -0.03 | 0.10 | 66 | Consumer Defensive | |
| Duke Energy Corporation | -0.25 | -0.05 | 0.11 | 56 | Utilities | |
| The Coca-Cola Company | -0.24 | 0.01 | 0.19 | 90 | Consumer Defensive | |
| Occidental Petroleum Corporation | -0.22 | 0.06 | 0.22 | 70 | Energy | |
| Exxon Mobil Corporation | -0.22 | 0.02 | 0.18 | 84 | Energy |
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