Wells Mutual Fund Volatility

WFFFX -  USA Fund  

USD 7.80  0.08  1.04%

We consider Wells Fargo very steady. Wells Fargo Target shows Sharpe Ratio of 0.0913, which attests that the fund had 0.0913% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a fund is to use all available market data together with fund-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Wells Fargo Target, which you can use to evaluate the future volatility of the fund. Please check out Wells Fargo Target Market Risk Adjusted Performance of (0.030066), downside deviation of 0.2519, and Mean Deviation of 0.1703 to validate if the risk estimate we provide is consistent with the expected return of 0.0254%.

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Wells Fargo Mutual Fund 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.

60 Days Market Risk

Very steady

Chance of Distress

Very Small

60 Days Economic Sensitivity

Moves indifferently to market moves

Wells Fargo Market Sensitivity And Downside Risk

Wells Fargo's beta coefficient measures the volatility of Wells mutual fund 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 mutual fund's returns against your selected market. In other words, Wells Fargo's beta of -0.0481 provides an investor with an approximation of how much risk Wells Fargo mutual fund 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 Target Demand Trend
Check current 90 days Wells Fargo correlation with market (DOW)

Wells Beta

    
  -0.0481  
Wells standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  0.28  
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 Target Mutual Fund Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Wells Fargo Target Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

Wells Fargo Projected Return Density Against Market

Assuming the 90 days horizon Wells Fargo Target has a beta of -0.0481 . 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 Target is likely to outperform the market.
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 Wells Fargo Funds 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 an alpha of 0.0035, implying that it can generate a 0.0035 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Wells Fargo Mutual Fund 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 Wells Fargo Funds 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.
Assuming the 90 days horizon the coefficient of variation of Wells Fargo is 1095.15. The daily returns are distributed with a variance of 0.08 and standard deviation of 0.28. The mean deviation of Wells Fargo Target is currently at 0.2. For similar time horizon, the selected benchmark (DOW) has volatility of 0.69
α
Alpha over DOW
0.0035
β
Beta against DOW-0.05
σ
Overall volatility
0.28
Ir
Information ratio -0.15

Wells Fargo Mutual Fund 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 fund shows 0.2781% volatility of returns over 90 . By contrast, DOW inherits 0.7356% risk (volatility on return distribution) over the 90 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.
The investment seeks total return over time, consistent with its strategic target asset allocation. Wells Fargo is traded on NASDAQ Exchange in the United States.

Wells Fargo Investment Opportunity

DOW has a standard deviation of returns of 0.74 and is 2.64 times more volatile than Wells Fargo Target. 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 Target is lower than 2 () of all global equities and portfolios over the last 90 days. Use Wells Fargo Target to enhance returns of your portfolios. The mutual fund experiences a large bullish trend. Check odds of Wells Fargo to be traded at $8.58 in 90 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.

Good diversification

The correlation between Wells Fargo Target and DJI is Good diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Target and DJI in the same portfolio assuming nothing else is changed.

Wells Fargo Additional Risk Indicators

The analysis of Wells Fargo's secondary risk indicators 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's 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 the risk of your existing portfolios.
Risk Adjusted Performance0.0162
Market Risk Adjusted Performance(0.030066)
Mean Deviation0.1703
Semi Deviation0.1565
Downside Deviation0.2519
Coefficient Of Variation1797.8
Standard Deviation0.2144
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 similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

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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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Wells Fargo as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Wells Fargo's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Wells Fargo's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Wells Fargo Target.
Check out Your Current Watchlist. Note that the Wells Fargo Target information on this page should be used as a complementary analysis to other Wells Fargo's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Complementary Tools for Wells Mutual Fund analysis

When running Wells Fargo Target price analysis, check to measure Wells Fargo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Wells Fargo is operating at the current time. Most of Wells Fargo's value examination focuses on studying past and present price action to predict the probability of Wells Fargo's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Wells Fargo's price. Additionally, you may evaluate how the addition of Wells Fargo to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Wells Fargo's value and its price as these two are different measures arrived at by different means. Investors typically determine Wells Fargo value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wells Fargo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.