Wells Fargo Risk Analysis

Wells Fargo Company -- USA Stock  

USD 54.91  0.01  0.0182%

We consider Wells Fargo not too risky. Wells Fargo shows Sharpe Ratio of 0.0784 which attests that Wells Fargo had 0.0784% of return per unit of risk over the last 1 month. Our philosophy towards determining volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Wells Fargo which you can use to evaluate future volatility of the organization. Please check out Wells Fargo Market Risk Adjusted Performance of 0.0479, Mean Deviation of 0.732 and Downside Deviation of 1.4 to validate if risk estimate we provide are consistent with the epected return of 0.0822%.
Investment Horizon     30 Days    Login   to change

Wells Fargo Market Sensitivity

As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Wells Fargo will likely underperform.
One Month Beta |Analyze Wells Fargo Demand Trend
Check current 30 days Wells Fargo correlation with market (DOW)
β = 1.7622
Wells Fargo Large BetaWells Fargo Beta Legend

Projected Return Density Against Market

Considering 30-days investment horizon, the stock has beta coefficient of 1.7622 . This means as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, Wells Fargo will likely underperform. Additionally, Wells Fargo Company has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of Wells Fargo is 1274.75. The daily returns are destributed with a variance of 1.1 and standard deviation of 1.05. The mean deviation of Wells Fargo Company is currently at 0.73. For similar time horizon, the selected benchmark (DOW) has volatility of 0.27
α
Alpha over DOW
=0.26
βBeta against DOW=1.76
σ
Overall volatility
=1.05
 IrInformation ratio =0.11

Actual Return Volatility

Wells Fargo Company has volatility of 1.048% on return distribution over 30 days investment horizon. DOW inherits 0.2576% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Wells Fargo Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

Close to average

30 Days Economic Sensitivity

Very susceptible to market

Total Debt

Wells Fargo Total Debt History

Total Debt

Largest Trends

Wells Fargo Largest Period Trend

Investment Outlook

Wells Fargo Investment Opportunity
Wells Fargo Company has a volatility of 1.05 and is 4.04 times more volatile than DOW. 9% of all equities and portfolios are less risky than Wells Fargo. Compared to the overall equity markets, volatility of historical daily returns of Wells Fargo Company is lower than 9 (%) of all global equities and portfolios over the last 30 days. Use Wells Fargo Company to protect against small markets fluctuations. The stock experiences normal downward trend and little activity. Check odds of Wells Fargo to be traded at $54.36 in 30 days. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Wells Fargo will likely underperform.

Wells Fargo correlation with market

Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Company and equity matching DJI index in the same portfolio.