Wells Fargo Correlations

WABIX Fund  USD 10.60  0.07  0.66%   
The current 90-days correlation between Wells Fargo Advantage and Diversified Income Fund is 0.66 (i.e., 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

Significant diversification

The correlation between Wells Fargo Advantage and DJI is 0.01 (i.e., Significant 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 Your Current Watchlist 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 gross domestic product.
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

  0.81DHICX Wells Fargo AdvantagePairCorr
  0.78VMPYX Wells Fargo AdvantagePairCorr
  0.79VMPAX Wells Fargo AdvantagePairCorr
  0.67WSBIX Short Term MunicipalPairCorr
  1.0WARAX Wells Fargo AdvantagePairCorr
  1.0WARDX Wells Fargo AdvantagePairCorr
  1.0WARCX Wells Fargo AdvantagePairCorr
  0.85WSIAX Wells Fargo StrategicPairCorr
  0.84WSIDX Wells Fargo StrategicPairCorr
  0.9WSICX Wells Fargo StrategicPairCorr
  0.85WSINX Wells Fargo StrategicPairCorr
  0.67WSMAX Short Term MunicipalPairCorr
  0.77WSSCX Short Term MunicipalPairCorr
  0.68WSTMX Short Term MunicipalPairCorr
  0.79STRIX Wells Fargo AdvantagePairCorr
  0.78STYAX Wells Fargo IncomePairCorr
  0.76SCTAX California Tax FreePairCorr
  0.76SCTCX California Tax FreePairCorr

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   
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High negative correlations   
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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.