Wells Fargo Correlations

EAIFX Fund  USD 16.35  0.08  0.49%   
The current 90-days correlation between Wells Fargo Advantage and Wells Fargo Advantage is -0.06 (i.e., Good diversification). The correlation of Wells Fargo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Wells Fargo Correlation With Market

Poor diversification

The correlation between Wells Fargo Advantage and DJI is 0.76 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Advantage and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Wells Fargo Advantage. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in census.
For more information on how to buy Wells Mutual Fund please use our How to Invest in Wells Fargo guide.

Moving together with Wells Mutual Fund

  0.62SADAX Wells Fargo UltraPairCorr
  0.68SADIX Wells Fargo UltraPairCorr
  0.86WABIX Wells Fargo AdvantagePairCorr
  0.68SSTHX Wells Fargo ShortPairCorr
  0.85WSCGX Small Pany GrowthPairCorr
  0.78WSCOX Wells Fargo AdvantagePairCorr
  0.61WSBIX Short Term MunicipalPairCorr
  0.85WARAX Wells Fargo AdvantagePairCorr
  0.85WARDX Wells Fargo AdvantagePairCorr
  0.82WARCX Wells Fargo AdvantagePairCorr
  0.67STAFX Wells Fargo LargePairCorr
  0.68STDFX Wells Fargo LargePairCorr
  0.72WSIDX Wells Fargo StrategicPairCorr
  0.62WSICX Wells Fargo StrategicPairCorr
  0.61WSMAX Short Term MunicipalPairCorr
  0.89WSMCX Small Pany GrowthPairCorr
  0.66WSTMX Short Term MunicipalPairCorr
  0.69STNFX Wells Fargo LargePairCorr
  0.66STSAX Wells Fargo MonPairCorr
  0.69STYIX Wells Fargo ShortPairCorr
  0.8SCNSX Wells Fargo MonPairCorr
  0.8SCSDX Wells Fargo MonPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
EMGNXEMGYX
EMGAXEMGYX
EMGAXEMGNX
VMPYXDHICX
VMPAXVMPYX
VMPAXDHICX
  
High negative correlations   
EMGAXSADIX
EMGYXSADIX
EMGNXSADIX
EMGCXSADIX
EMGAXSADAX
EMGYXSADAX

Risk-Adjusted Indicators

There is a big difference between Wells Mutual Fund performing well and Wells Fargo Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Wells Fargo's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
DHICX  0.09 (0.01)(0.43)(0.17) 0.11 
 0.23 
 0.79 
VMPYX  0.09 (0.01)(0.44)(0.06) 0.10 
 0.23 
 0.79 
VMPAX  0.09  0.00 (0.40) 0.01  0.08 
 0.23 
 0.79 
SADAX  0.05  0.00 (0.81) 1.75  0.00 
 0.11 
 0.46 
SADIX  0.05  0.01 (0.74) 1.71  0.00 
 0.11 
 0.57 
EMGYX  0.60  0.02 (0.06) 0.25  0.83 
 1.28 
 5.15 
EMGNX  0.60  0.03 (0.06) 0.27  0.83 
 1.23 
 5.20 
EMGCX  0.61  0.05 (0.05) 2.50  0.79 
 1.27 
 5.16 
EMGAX  0.60  0.02 (0.07) 0.25  0.84 
 1.28 
 5.16 
SSHIX  0.07 (0.01)(0.74)(2.29) 0.06 
 0.12 
 0.47