Wells Volatility

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WFC -- USA Stock  

 Earnings Call  This Week

Wells Fargo shows Sharpe Ratio of -0.0591, which attests that the company had -0.0591% of return per unit of risk over the last 3 months. Macroaxis standpoint towards determining the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Wells Fargo exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check out Wells Fargo mean deviation of 3.37, and market risk adjusted performance of 2.88 to validate the risk estimate we provide.

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Wells Fargo Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Wells daily returns, and it is calculated using variance and standard deviation. We also use Wells's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Wells Fargo volatility.

90 Days Market Risk

Not too volatile

Chance of Distress

Close to Average

90 Days Economic Sensitivity

Moves indifferently to market moves

Wells Fargo Market Sensitivity And Downside Risk

Wells Fargo beta coefficient measures the volatility of Wells stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Wells stock's returns against your selected market. In other words, Wells Fargo's beta of -0.0641 provides an investor with an approximation of how much risk Wells Fargo stock can potentially add to one of your existing portfolios. Let's try to break down what Wells's beta means in this case. As returns on the market increase, returns on owning Wells Fargo are expected to decrease at a much lower rate. During the bear market, Wells Fargo is likely to outperform the market.
3 Months Beta |Analyze Wells Fargo Demand Trend
Check current 30 days Wells Fargo correlation with market (DOW)
β

Current Wells Fargo Beta Coefficient

 = 

Wells Fargo Central Daily Price Deviations

It is essential to understand the difference between upside risk (as represented by Wells Fargo's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Wells Fargo stock's daily returns or price. Since the actual investment returns on holding a position in Wells Fargo stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Wells Fargo.

Wells Fargo Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Wells Fargo Typical Price indicator is an average of each day price and can be used instead of closing price when creating different Wells Fargo moving average lines. View also all equity analysis or get more info about typical price price transform indicator.

Wells Fargo Projected Return Density Against Market

Considering the 30-days investment horizon, Wells Fargo has a beta of -0.0641 . This entails as returns on benchmark increase, returns on holding Wells Fargo are expected to decrease at a much lower rate. During the bear market, however, Wells Fargo is likely to outperform the market. Additionally, Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Wells Fargo or Dividend Beast sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Wells Fargo stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Wells stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. The company has a negative alpha, implying that the risk taken by holding this equity is not justified. Wells Fargo is significantly underperforming DOW.
 Predicted Return Density 
      Returns 

Wells Fargo Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Wells Fargo or Dividend Beast sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Wells Fargo stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Wells stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Considering the 30-days investment horizon, the coefficient of variation of Wells Fargo is -1691.06. The daily returns are destributed with a variance of 17.03 and standard deviation of 4.13. The mean deviation of Wells Fargo is currently at 3.24. For similar time horizon, the selected benchmark (DOW) has volatility of 1.82
α
Alpha over DOW
=-0.17
β
Beta against DOW=-0.06
σ
Overall volatility
=4.13
Ir
Information ratio =-0.08

Wells Fargo Return Volatility

Wells Fargo historical daily return volatility represents how much Wells Fargo stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company has volatility of 4.1273% on return distribution over 30 days investment horizon. By contrast, DOW inherits 1.812% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

About Wells Fargo Volatility

Volatility is a rate at which the price of Wells Fargo or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Wells Fargo may increase or decrease. In other words, similar to Wells's beta indicator, it measures the risk of Wells Fargo and helps estimate the fluctuations that may happen in a short period of time. So if prices of Wells Fargo fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
Last ReportedProjected for 2020
Market Capitalization249.1 B268.8 B
Wells Fargo Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services to individuals, businesses, and institutions in the United States and internationally. It operates in three segments Community Banking, Wholesale Banking, and Wealth and Investment Management. The Community Banking segment offers checking and savings accounts credit and debit cards and automobile, student, mortgage, home equity, and small business lending products. The Wholesale Banking segment provides commercial, corporate, capital markets, cash management, and real estate banking products and services, including traditional commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection services, foreign exchange services, treasury management, institutional fixed-income sales, interest rate, commodity and equity risk management, onlineelectronic products, corporate trust fiduciary and agency services, and investment banking services. It also offers commercial and residential development, land acquisition and development, rehabilitation, permanent securitization, and commercial real estate loans secured and unsecured lines of credit affordable housing loans and letters of credit and interim financing arrangements. The Wealth and Investment Management segment provides personalized wealth management, investment, and retirement products and services and delivers financial planning, private banking, credit, investment management, and fiduciary services. The company also offers brokerage, and Internet and mobile banking services and has collaboration with National LGBT Chamber of Commerce. As of March 16, 2020, it operated through 7,400 locations approximately 13,000 ATMs and offices in 32 countries and territories. The Company was founded in 1852 and is headquartered in San Francisco, California.

Wells Fargo Investment Opportunity

Wells Fargo has a volatility of 4.13 and is 2.28 times more volatile than DOW. 35  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 is lower than 35 () of all global equities and portfolios over the last 30 days. Use Wells Fargo to enhance returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Wells Fargo to be traded at $31.84 in 30 days. . Let's try to break down what Wells's beta means in this case. As returns on the market increase, returns on owning Wells Fargo are expected to decrease at a much lower rate. During the bear market, Wells Fargo is likely to outperform the market.

Wells Fargo correlation with market

correlation synergy
Good 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.

Wells Fargo Additional Risk Indicators

The analysis of various secondary risk indicators of Wells Fargo is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Wells Fargo investment, and either accepting that risk or mitigating it. Along with some common measures of Wells Fargo stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging your existing portfolio. Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing the like to determine which investment holds the most risk.
Risk Adjusted Performance(0.07)
Market Risk Adjusted Performance2.88
Mean Deviation3.37
Coefficient Of Variation(2,459)
Standard Deviation4.28
Variance18.29
Information Ratio(0.08)

Wells Fargo Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page