Ultra Short Correlations

WUSMX Fund  USD 9.64  0.01  0.10%   
The current 90-days correlation between Ultra Short Term and Wells Fargo Advantage is 0.2 (i.e., Modest diversification). The correlation of Ultra Short 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.

Ultra Short Correlation With Market

Significant diversification

The correlation between Ultra Short Term Municipal and DJI is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Short Term Municipal 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 Ultra Short Term Municipal. 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 population.

Moving together with Ultra Mutual Fund

  0.62VMPAX Wells Fargo AdvantagePairCorr
  0.86SADAX Wells Fargo UltraPairCorr
  0.87SADIX Wells Fargo UltraPairCorr
  0.79SSHIX Wells Fargo ShortPairCorr
  0.9SSTHX Wells Fargo ShortPairCorr
  0.74SSTVX Wells Fargo ShortPairCorr
  0.87WSBIX Short Term MunicipalPairCorr
  0.62WSGIX Wells Fargo ShortPairCorr
  0.78WSIAX Wells Fargo StrategicPairCorr
  0.77WSIDX Wells Fargo StrategicPairCorr
  0.72WSICX Wells Fargo StrategicPairCorr
  0.82WSINX Wells Fargo StrategicPairCorr
  0.83WSMAX Short Term MunicipalPairCorr
  0.78WSSCX Short Term MunicipalPairCorr
  0.79WSTMX Short Term MunicipalPairCorr
  0.67STRIX Wells Fargo AdvantagePairCorr
  0.74STYIX Wells Fargo ShortPairCorr
  0.71SCTAX California Tax FreePairCorr
  0.67SCTCX California Tax FreePairCorr

Moving against Ultra Mutual Fund

  0.56EMGCX Wells Fargo EmergingPairCorr
  0.54EMGNX Wells Fargo EmergingPairCorr
  0.52EMGYX Wells Fargo EmergingPairCorr
  0.52EMGAX Wells Fargo EmergingPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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   
EMGAXEMGYX
VMPAXDHICX
SADIXSADAX
EMGNXEMGYX
EMGAXEMGNX
VMPYXDHICX
  
High negative correlations   
EMGCXSADIX
EMGCXSADAX
EMGAXSADIX
EMGNXSADIX
EMGYXSADIX
EMGAXSADAX

Risk-Adjusted Indicators

There is a big difference between Ultra Mutual Fund performing well and Ultra Short 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 Ultra Short'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  0.12 (0.02) 0.00 (2.45) 0.00 
 0.23 
 1.02 
VMPYX  0.11 (0.03) 0.00 (4.28) 0.00 
 0.23 
 0.91 
VMPAX  0.12 (0.02) 0.00 (19.84) 0.00 
 0.23 
 1.02 
SADAX  0.04  0.00 (0.13)(0.13) 0.00 
 0.11 
 0.46 
SADIX  0.04  0.00 (0.12)(1.06) 0.00 
 0.11 
 0.57 
EMGYX  0.56 (0.17) 0.00 (1.02) 0.00 
 0.89 
 2.99 
EMGNX  0.56 (0.15) 0.00 (0.90) 0.00 
 0.88 
 3.01 
EMGCX  0.56 (0.15) 0.00 (1.00) 0.00 
 0.91 
 3.02 
EMGAX  0.56 (0.17) 0.00 (0.99) 0.00 
 0.87 
 2.98 
SSHIX  0.08 (0.01) 0.00  0.62  0.00 
 0.12 
 0.70