Fidelity Freedom Correlations

FRCNX Fund

10.54 0.09 0.86%

The current 90-days correlation between Fidelity Freedom Blend and Aqr Diversified Arbitrage is -0.2 (i.e., Good diversification). The correlation of Fidelity Freedom 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.

Fidelity Freedom Correlation With Market

Very weak diversification

The correlation between Fidelity Freedom Blend and DJI is 0.55 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Freedom Blend and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios. 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 board of governors.

Moving together with Fidelity Mutual Fund

0.9	VTSAX	Vanguard Total Stock	Pair Corr
0.9	VFIAX	Vanguard 500 Index	Pair Corr
0.9	VTSMX	Vanguard Total Stock	Pair Corr
0.9	VITSX	Vanguard Total Stock	Pair Corr
0.9	VSTSX	Vanguard Total Stock	Pair Corr
0.9	VSMPX	Vanguard Total Stock	Pair Corr
0.9	VFINX	Vanguard 500 Index	Pair Corr
0.9	VFFSX	Vanguard 500 Index	Pair Corr
0.87	VGTSX	Vanguard Total Inter	Pair Corr
0.86	VTIAX	Vanguard Total Inter	Pair Corr
0.79	ZGFIX	Investec Global Franchise	Pair Corr
0.86	LBNYX	Lord Abbett Bond	Pair Corr
0.91	MRSIX	Mfs Research Interna	Pair Corr
0.62	WMT	Walmart Aggressive Push	Pair Corr
0.63	IBM	International Business Sell-off Trend	Pair Corr
0.72	DD	Dupont De Nemours	Pair Corr

Moving against Fidelity Mutual Fund

0.33

PFE

Pfizer Inc

Pair Corr

Related Correlations Analysis

	QDARX	BDVFX	ELDFX	HIIDX	CDBCX	LIXRX	PGBAX	MDBSX
QDARX		-0.24	-0.4	0.38	0.08	0.33	0.57	0.33	QDARX
BDVFX	-0.24		0.83	0.69	0.91	0.68	0.59	0.79	BDVFX
ELDFX	-0.4	0.83		0.64	0.73	0.61	0.43	0.59	ELDFX
HIIDX	0.38	0.69	0.64		0.81	0.94	0.92	0.88	HIIDX
CDBCX	0.08	0.91	0.73	0.81		0.77	0.81	0.96	CDBCX
LIXRX	0.33	0.68	0.61	0.94	0.77		0.89	0.8	LIXRX
PGBAX	0.57	0.59	0.43	0.92	0.81	0.89		0.89	PGBAX
MDBSX	0.33	0.79	0.59	0.88	0.96	0.8	0.89		MDBSX
	QDARX	BDVFX	ELDFX	HIIDX	CDBCX	LIXRX	PGBAX	MDBSX

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

MDBSX	+ 0.96	CDBCX
LIXRX	+ 0.94	HIIDX
PGBAX	+ 0.92	HIIDX
CDBCX	+ 0.91	BDVFX
PGBAX	+ 0.89	LIXRX
MDBSX	+ 0.89	PGBAX

High negative correlations

ELDFX	- 0.4	QDARX
BDVFX	- 0.24	QDARX

Risk-Adjusted Indicators

There is a big difference between Fidelity Mutual Fund performing well and Fidelity Freedom Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Fidelity Freedom's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
QDARX	0.08	0.03	0.49	1.95	0.00	(0.14)	0.25	(0.08)	0.49
BDVFX	0.27	0.01	0.06	0.01	0.34	(0.31)	0.54	(0.54)	1.91
ELDFX	0.44	(0.01)	0.00	(0.06)	0.00	0.00	0.68	(1.05)	5.08
HIIDX	0.54	0.05	0.08	0.09	0.68	(0.54)	1.14	(0.95)	3.01
CDBCX	0.25	0.03	0.15	0.27	0.19	(0.31)	0.66	(0.44)	1.55
LIXRX	0.29	0.01	0.07	0.03	0.37	(0.31)	0.55	(0.49)	1.91
PGBAX	0.15	0.02	0.22	0.26	0.00	(0.19)	0.34	(0.25)	0.93
MDBSX	0.23	0.04	0.19	0.45	0.09	(0.32)	0.75	(0.38)	1.38

Fidelity Freedom Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Fidelity Freedom mutual fund to make a market-neutral strategy. Peer analysis of Fidelity Freedom could also be used in its relative valuation, which is a method of valuing Fidelity Freedom by comparing valuation metrics with similar companies.

Aqr Diversified Arbitrage Blackrock Diversified Fixed Elfun Diversified Fund Harbor Diversified International Diversified Bond Fund Lord Abbett Diversified Global Diversified Income Massmutual Premier Diversified American Airlines Group Alcoa Corp Apple Inc Best Buy Co Citigroup SentinelOne CVS Health Corp

Risk & Return

Correlation

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