| IPBJX Fund | | | USD 10.71 0.01 0.09% |
The current 90-days correlation between Wells Fargo Real and Growth Allocation Fund is 0.48 (i.e., Very weak diversification). The correlation of Wells Fargo 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.
Wells Fargo Correlation With Market
Weak diversification
The correlation between Wells Fargo Real and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Real and DJI in the same portfolio, assuming nothing else is changed.
Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Wells Fargo Real. 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 inflation.
For more information on how to buy Wells Mutual Fund please use our
How to Invest in Wells Fargo guide.