Looking to diversify beyond VSTCX? The mutual funds below have the lowest correlation with VSTCX — 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 VSTCX.
Best Diversifiers for VSTCX
2 mutual funds have low correlation with VSTCX (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Energy Opportunities Fund Investor Shares (VGENX) (Energy Equities) with a 1Y correlation of 0.15, down from 0.51 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Energy Opportunities Fund Investor Shares | 0.15 | 0.38 | 0.51 | 61 | Energy Equities | VSTCX vs VGENX | |
| Federated Hermes MDT Small Cap Core Fund | 0.30 | 0.64 | 0.80 | 57 | Small Cap Blend Equities | VSTCX vs QISCX | |
| Fidelity Blue Chip Growth Fund | 0.60 | 0.59 | 0.66 | 73 | Large Cap Growth Equities | VSTCX vs FBGRX | |
| American Funds New World Fund® Class R-6 | 0.62 | 0.65 | 0.72 | 65 | Emerging Markets Diversified | VSTCX vs RNWGX | |
| Vanguard Information Technology Index Fund Admiral... | 0.63 | 0.63 | 0.70 | 65 | Technology Equities | VSTCX vs VITAX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VSTCX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VSTCX and solid risk/return profiles. The least correlated is Atai Life Sciences N.V. (ATAI) (Healthcare) with a 1Y correlation of 0.28, down from 0.39 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Atai Life Sciences N.V. | 0.28 | 0.38 | 0.39 | 67 | Healthcare | |
| COMPASS Pathways plc | 0.31 | 0.39 | 0.41 | 87 | Healthcare | |
| NVIDIA Corporation | 0.32 | 0.35 | 0.49 | 76 | Technology | |
| Definium Therapeutics, Inc | 0.32 | 0.44 | — | 98 | Healthcare | |
| Pfizer Inc. | 0.34 | 0.30 | 0.27 | 58 | Healthcare |
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