Looking to diversify beyond VLCAX? The mutual funds below have the lowest correlation with VLCAX — 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 VLCAX.
Best Diversifiers for VLCAX
4 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 -0.06, down from 0.32 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.06 | 0.19 | 0.32 | 62 | Energy Equities | VLCAX vs FSENX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.04 | 0.10 | 0.15 | 90 | Inflation-Protected Bonds | VLCAX vs VTAPX | |
| Vanguard Short-Term Treasury Index Fund Admiral Sh... | 0.21 | 0.08 | 0.07 | 90 | Government Bonds | VLCAX vs VSBSX | |
| Fidelity Floating Rate High Income Fund | 0.27 | 0.31 | 0.33 | 93 | Bank Loan | VLCAX vs FFRHX | |
| Goldman Sachs Strategic Volatility Premium Fund | 0.31 | 0.16 | 0.13 | 95 | Large Cap Blend Equities | VLCAX vs SVPFX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VLCAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VLCAX and solid risk/return profiles. The least correlated is The Coca-Cola Company (KO) (Consumer Defensive) with a 1Y correlation of -0.23, down from 0.20 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| The Coca-Cola Company | -0.23 | 0.02 | 0.20 | 83 | Consumer Defensive | |
| Altria Group, Inc. | -0.22 | -0.02 | 0.11 | 81 | Consumer Defensive | |
| Duke Energy Corporation | -0.19 | -0.02 | 0.10 | 66 | Utilities | |
| Waste Management, Inc. | -0.18 | 0.10 | 0.24 | 53 | Industrials | |
| Exxon Mobil Corporation | -0.18 | 0.03 | 0.18 | 75 | Energy |
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Build a portfolio that complements VLCAX
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