Correlation Between Fidelity Freedom and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Fidelity Freedom and Fidelity Series 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 Fidelity Freedom and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Freedom Index and Fidelity Series Equity Income, you can compare the effects of market volatilities on Fidelity Freedom and Fidelity Series 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 Fidelity Freedom with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Freedom and Fidelity Series.
Diversification Opportunities for Fidelity Freedom and Fidelity Series
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Fidelity is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Freedom Index and Fidelity Series Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Equity and Fidelity Freedom 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 Fidelity Freedom Index are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Equity has no effect on the direction of Fidelity Freedom i.e., Fidelity Freedom and Fidelity Series go up and down completely randomly.
Pair Corralation between Fidelity Freedom and Fidelity Series
Assuming the 90 days horizon Fidelity Freedom is expected to generate 1.24 times less return on investment than Fidelity Series. But when comparing it to its historical volatility, Fidelity Freedom Index is 1.32 times less risky than Fidelity Series. It trades about 0.26 of its potential returns per unit of risk. Fidelity Series Equity Income is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,547 in Fidelity Series Equity Income on November 2, 2024 and sell it today you would earn a total of 51.00 from holding Fidelity Series Equity Income or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Fidelity Freedom Index vs. Fidelity Series Equity Income
Performance |
| Timeline |
| Fidelity Freedom Index |
| Fidelity Series Equity |
Fidelity Freedom and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Freedom and Fidelity Series
The main advantage of trading using opposite Fidelity Freedom and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Freedom position performs unexpectedly, Fidelity Series 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 Fidelity Series will offset losses from the drop in Fidelity Series' long position.| Fidelity Freedom vs. Fidelity Freedom Index | Fidelity Freedom vs. Fidelity Freedom Index | Fidelity Freedom vs. Fidelity Freedom Index | Fidelity Freedom vs. Fidelity Freedom Index |
| Fidelity Series vs. Fidelity Freedom 2015 | Fidelity Series vs. Fidelity Puritan Fund | Fidelity Series vs. Fidelity Puritan Fund | Fidelity Series vs. Fidelity Pennsylvania Municipal |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |