Correlation Between Wells Fargo and Nasdaq-100 Index
Can any of the company-specific risk be diversified away by investing in both Wells Fargo and Nasdaq-100 Index at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wells Fargo and Nasdaq-100 Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wells Fargo Short and Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Wells Fargo and Nasdaq-100 Index and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wells Fargo with a short position of Nasdaq-100 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wells Fargo and Nasdaq-100 Index.
Diversification Opportunities for Wells Fargo and Nasdaq-100 Index
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wells and Nasdaq-100 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Short and Nasdaq 100 Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Index and Wells Fargo is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wells Fargo Short are associated (or correlated) with Nasdaq-100 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Index has no effect on the direction of Wells Fargo i.e., Wells Fargo and Nasdaq-100 Index go up and down completely randomly.
Pair Corralation between Wells Fargo and Nasdaq-100 Index
If you would invest 5,279 in Nasdaq 100 Index Fund on May 27, 2025 and sell it today you would earn a total of 521.00 from holding Nasdaq 100 Index Fund or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Wells Fargo Short vs. Nasdaq 100 Index Fund
Performance |
| Timeline |
| Wells Fargo Short |
Risk-Adjusted Performance
Good
Weak | Strong |
| Nasdaq 100 Index |
Wells Fargo and Nasdaq-100 Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wells Fargo and Nasdaq-100 Index
The main advantage of trading using opposite Wells Fargo and Nasdaq-100 Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wells Fargo position performs unexpectedly, Nasdaq-100 Index can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nasdaq-100 Index will offset losses from the drop in Nasdaq-100 Index's long position.| Wells Fargo vs. Dana Large Cap | Wells Fargo vs. Dreyfus Large Cap | Wells Fargo vs. Dunham Large Cap | Wells Fargo vs. Qs Large Cap |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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