Wells Fargo Correlations

EGWDX Fund  USD 14.89  0.52  3.37%   
The current 90-days correlation between Wells Fargo Advantage and Dreyfus Technology Growth is 0.82 (i.e., Very poor 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

Very weak diversification

The correlation between Wells Fargo Advantage and DJI is 0.51 (i.e., Very weak 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 unemployment.
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

  0.84WSCGX Small Pany GrowthPairCorr
  0.92WSCOX Wells Fargo AdvantagePairCorr
  0.77STAFX Wells Fargo LargePairCorr
  0.78STDFX Wells Fargo LargePairCorr
  0.73WSMCX Small Pany GrowthPairCorr
  0.72STOFX Wells Fargo LargePairCorr
  0.78STNFX Wells Fargo LargePairCorr
  0.76STSAX Wells Fargo MonPairCorr
  0.87SCNSX Wells Fargo MonPairCorr
  0.87SCSDX Wells Fargo MonPairCorr

Moving against WELLS Mutual Fund

  0.66SSHIX Wells Fargo ShortPairCorr
  0.64SSTVX Wells Fargo ShortPairCorr
  0.56SADAX Wells Fargo UltraPairCorr
  0.54SADIX Wells Fargo UltraPairCorr
  0.35WSBIX Short Term MunicipalPairCorr
  0.61WSGIX Wells Fargo ShortPairCorr
  0.49WSINX Wells Fargo StrategicPairCorr
  0.47WSIAX Wells Fargo StrategicPairCorr
  0.46WSIDX Wells Fargo StrategicPairCorr
  0.42WSICX Wells Fargo StrategicPairCorr
  0.34WSTMX Short Term MunicipalPairCorr
  0.32WSMAX Short Term MunicipalPairCorr
  0.6MNSGX Wells Fargo ShortPairCorr
  0.35STYIX Wells Fargo ShortPairCorr

Related Correlations Analysis

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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.