Macroaxis considers Wells Fargo not too risky given 1 month investment horizon. Wells Fargo shows Sharpe Ratio of 0.4556 which attests that Wells Fargo had 0.4556% 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. By examining Wells Fargo technical indicators you can presently evaluate if the expected return of 0.5319% is justified by implied risk. Please utilize Wells Fargo Market Risk Adjusted Performance of 0.5557, Mean Deviation of 1.02 and Coefficient Of Variation of 225.51 to validate if our risk estimates are consistent with your expectations.
|Investment Horizon||30 Days Login to change|
Wells Fargo Market Sensitivity
|Wells Fargo returns are very sensitive to returns on the market. As market goes up or down, Wells Fargo is expected to follow.One Month Beta |Analyze Wells Fargo Demand TrendCheck current 30 days Wells Fargo correlation with market (DOW)|
β = 0.9491
Wells Fargo Technical Analysis
Projected Return Density Against MarketConsidering 30-days investment horizon, Wells Fargo has beta of 0.9491 . This means Wells Fargo Company market returns are very sensitive to returns on the market. As the market benchmark goes up or down, Wells Fargo is expected to follow. Moreover, Wells Fargo Company has an alpha of 0.3312 implying that it can potentially generate 0.3312% excess return over DOW after adjusting for the inherited market risk (beta).
Considering 30-days investment horizon, the coefficient of variation of Wells Fargo is 219.51. The daily returns are destributed with a variance of 1.36 and standard deviation of 1.17. The mean deviation of Wells Fargo Company is currently at 1.01. For similar time horizon, the selected benchmark (DOW) has volatility of 0.49