Index Fund Correlations

WFINX Fund  USD 53.17  0.95  1.76%   
The current 90-days correlation between Index Fund Class and Wells Fargo Advantage is 0.24 (i.e., Modest diversification). The correlation of Index Fund 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.

Index Fund Correlation With Market

Good diversification

The correlation between Index Fund Class and DJI is -0.12 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Index Fund Class and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Index Fund Class. 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 board of governors.

Moving together with INDEX Mutual Fund

  0.89WSCGX Small Pany GrowthPairCorr
  0.87WSCOX Wells Fargo AdvantagePairCorr
  0.92STAFX Wells Fargo LargePairCorr
  0.92STDFX Wells Fargo LargePairCorr
  0.9WSMCX Small Pany GrowthPairCorr
  0.91STOFX Wells Fargo LargePairCorr
  0.92STNFX Wells Fargo LargePairCorr
  0.94STSAX Wells Fargo MonPairCorr
  0.88SCNSX Wells Fargo MonPairCorr
  0.74SCTAX California Tax FreePairCorr
  0.77SCTCX California Tax FreePairCorr
  0.88SCSDX Wells Fargo MonPairCorr

Moving against INDEX Mutual Fund

  0.49SADIX Wells Fargo UltraPairCorr
  0.48SADAX Wells Fargo UltraPairCorr
  0.31SSHIX Wells Fargo ShortPairCorr
  0.32WSGIX Wells Fargo ShortPairCorr
  0.33MNSGX Wells Fargo ShortPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between INDEX Mutual Fund performing well and Index Fund 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 Index Fund'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  0.10  0.00  0.27 (0.12) 0.09 
 0.23 
 0.79 
VMPYX  0.10  0.00  0.28 (0.19) 0.05 
 0.23 
 0.80 
VMPAX  0.11  0.00  0.25 (0.35) 0.09 
 0.23 
 0.91 
SADAX  0.06  0.01  0.59 (0.51) 0.00 
 0.11 
 0.57 
SADIX  0.05  0.01  0.00 (0.67) 0.00 
 0.11 
 0.57 
EMGYX  0.68  0.01  0.00 (0.04) 0.00 
 1.43 
 3.90 
EMGNX  0.68  0.01  0.00 (0.04) 0.00 
 1.43 
 3.86 
EMGCX  0.68  0.00  0.00 (0.05) 0.00 
 1.40 
 3.81 
EMGAX  0.68  0.01  0.00 (0.04) 0.00 
 1.40 
 3.90 
SSHIX  0.07  0.01  0.39 (0.59) 0.00 
 0.23 
 0.59