Municipal Bond Correlations

WMFDX Fund

USD 9.80 0.01 0.10%

The correlation of Municipal Bond 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.

Municipal Bond Correlation With Market

Significant diversification

The correlation between Municipal Bond Fund and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Municipal Bond Fund 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 Municipal Bond Fund. 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.

Moving together with Municipal Mutual Fund

0.95	DHICX	Wells Fargo Advantage	Pair Corr
0.94	VMPYX	Wells Fargo Advantage	Pair Corr
0.95	VMPAX	Wells Fargo Advantage	Pair Corr
0.66	SSHIX	Wells Fargo Short	Pair Corr
0.68	WSGIX	Wells Fargo Short	Pair Corr
0.7	WSIAX	Wells Fargo Strategic	Pair Corr
0.7	WSIDX	Wells Fargo Strategic	Pair Corr
0.69	WSICX	Wells Fargo Strategic	Pair Corr
0.71	WSINX	Wells Fargo Strategic	Pair Corr
0.76	WSSCX	Short Term Municipal	Pair Corr
0.95	STRIX	Wells Fargo Advantage	Pair Corr
0.72	STYAX	Wells Fargo Income	Pair Corr
0.99	SCTCX	California Tax Free	Pair Corr

Moving against Municipal Mutual Fund

0.31	STAFX	Wells Fargo Large	Pair Corr
0.31	STOFX	Wells Fargo Large	Pair Corr
0.31	STNFX	Wells Fargo Large	Pair Corr
0.33	WCIAX	Allspring Conservative	Pair Corr
0.31	WCIIX	Wells Fargo Servative	Pair Corr

Related Correlations Analysis

	ASCLX	TSDUX	GTLSX	JSNIX	RYAMX	QLENX	PRMDX
ASCLX		0.9	0.78	0.11	0.0	0.85	0.22	ASCLX
TSDUX	0.9		0.72	0.19	0.0	0.84	0.23	TSDUX
GTLSX	0.78	0.72		0.03	0.0	0.9	0.2	GTLSX
JSNIX	0.11	0.19	0.03		0.0	0.08	0.79	JSNIX
RYAMX	0.0	0.0	0.0	0.0		0.0	0.0	RYAMX
QLENX	0.85	0.84	0.9	0.08	0.0		0.15	QLENX
PRMDX	0.22	0.23	0.2	0.79	0.0	0.15		PRMDX
	ASCLX	TSDUX	GTLSX	JSNIX	RYAMX	QLENX	PRMDX

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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

TSDUX	+ 0.9	ASCLX
QLENX	+ 0.9	GTLSX
QLENX	+ 0.85	ASCLX
QLENX	+ 0.84	TSDUX
PRMDX	+ 0.79	JSNIX
GTLSX	+ 0.78	ASCLX

High negative correlations

PRMDX	- 0.0	RYAMX
QLENX	- 0.0	RYAMX
RYAMX	- 0.0	JSNIX
RYAMX	- 0.0	GTLSX
RYAMX	- 0.0	TSDUX
RYAMX	- 0.0	ASCLX

Risk-Adjusted Indicators

There is a big difference between Municipal Mutual Fund performing well and Municipal Bond 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 Municipal Bond'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 Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ASCLX	0.37	0.00	(0.09)	0.12	0.35	(0.41)	0.77	(0.93)	2.91
TSDUX	0.04	0.01	0.00	1.16	0.00	0.00	0.10	0.00	0.10
GTLSX	0.31	0.01	(0.17)	0.15	0.22	(0.37)	0.71	(0.50)	2.57
JSNIX	0.08	0.00	(0.90)	(0.11)	0.00	(0.17)	0.22	(0.11)	0.64
RYAMX	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
QLENX	0.32	0.05	(0.05)	0.28	0.15	(0.39)	0.76	(0.57)	2.17
PRMDX	0.06	0.00	(0.47)	0.03	0.00	(0.20)	0.20	(0.19)	0.59

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