Fidelity Multi Alt Equity Fund Volatility
| FMAE Fund | 10.44 0.02 0.19% |
As of now, Fidelity Fund is very steady. Fidelity Multi Alt secures Sharpe Ratio (or Efficiency) of 0.11, which denotes the fund had a 0.11 % return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Fidelity Multi Alt Equity, which you can use to evaluate the volatility of the entity. Please confirm Fidelity Multi's Mean Deviation of 0.3711, coefficient of variation of 953.39, and Downside Deviation of 0.4984 to check if the risk estimate we provide is consistent with the expected return of 0.0524%.
Fidelity |
Fidelity Multi 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 Fidelity daily returns, and it is calculated using variance and standard deviation. We also use Fidelity's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Fidelity Multi volatility.
Downward market volatility can be a perfect environment for investors who play the long game with Fidelity Multi. They may decide to buy additional shares of Fidelity Multi at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving against Fidelity Fund
Fidelity Multi Market Sensitivity And Downside Risk
Fidelity Multi's beta coefficient measures the volatility of Fidelity fund compared to the systematic risk of the entire 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 Fidelity fund's returns against your selected market. In other words, Fidelity Multi's beta of -0.0117 provides an investor with an approximation of how much risk Fidelity Multi fund can potentially add to one of your existing portfolios. Fidelity Multi Alt Equity exhibits very low volatility with skewness of -0.18 and kurtosis of 0.59. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fidelity Multi's fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fidelity Multi's fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Fidelity Multi Alt Demand TrendCheck current 90 days Fidelity Multi correlation with market (Dow Jones Industrial)Fidelity Beta |
Fidelity standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity 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 | 0.48 |
It is essential to understand the difference between upside risk (as represented by Fidelity Multi's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Fidelity Multi's daily returns or price. Since the actual investment returns on holding a position in fidelity fund 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 Fidelity Multi.
Fidelity Multi Alt Fund Volatility Analysis
Volatility refers to the frequency at which Fidelity Multi fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Fidelity Multi's price changes. Investors will then calculate the volatility of Fidelity Multi's fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A fund with relatively stable price changes has low volatility. A highly volatile fund is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Fidelity Multi's volatility:
Historical Volatility
This type of fund volatility measures Fidelity Multi's fluctuations based on previous trends. It's commonly used to predict Fidelity Multi's future behavior based on its past. However, it cannot conclusively determine the future direction of the fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Fidelity Multi's current market price. This means that the fund will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Fidelity Multi's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of fifty-three. The Median Price line plots median indexes of Fidelity Multi Alt price series.
Fidelity Multi Projected Return Density Against Market
Assuming the 90 days trading horizon Fidelity Multi Alt Equity has a beta of -0.0117 . This usually indicates as returns on the benchmark increase, returns on holding Fidelity Multi are expected to decrease at a much lower rate. During a bear market, however, Fidelity Multi Alt Equity 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 Fidelity Multi or Fidelity 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 Fidelity Multi's price will be affected by overall fund 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 Fidelity fund'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.
Fidelity Multi Alt Equity has an alpha of 0.0416, implying that it can generate a 0.0416 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Fidelity Multi Price Volatility?
Several factors can influence a fund's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Fidelity Multi Fund Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Fidelity Multi is 919.52. The daily returns are distributed with a variance of 0.23 and standard deviation of 0.48. The mean deviation of Fidelity Multi Alt Equity is currently at 0.37. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.7
α | Alpha over Dow Jones | 0.04 | |
β | Beta against Dow Jones | -0.01 | |
σ | Overall volatility | 0.48 | |
Ir | Information ratio | -0.07 |
Fidelity Multi Fund Return Volatility
Fidelity Multi historical daily return volatility represents how much of Fidelity Multi fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund accepts 0.4822% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7226% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Fidelity Multi Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.72 and is 1.5 times more volatile than Fidelity Multi Alt Equity. 4 percent of all equities and portfolios are less risky than Fidelity Multi. You can use Fidelity Multi Alt Equity to enhance the returns of your portfolios. The fund experiences a normal upward fluctuation. Check odds of Fidelity Multi to be traded at 10.96 in 90 days.Good diversification
The correlation between Fidelity Multi Alt Equity and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Multi Alt Equity and DJI in the same portfolio, assuming nothing else is changed.
Fidelity Multi Additional Risk Indicators
The analysis of Fidelity Multi'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 Fidelity Multi's investment and either accepting that risk or mitigating it. Along with some common measures of Fidelity Multi fund's 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 Performance | 0.0692 | |||
| Market Risk Adjusted Performance | (3.47) | |||
| Mean Deviation | 0.3711 | |||
| Semi Deviation | 0.3948 | |||
| Downside Deviation | 0.4984 | |||
| Coefficient Of Variation | 953.39 | |||
| Standard Deviation | 0.4834 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Fidelity Multi 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.
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 Fidelity Multi 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. Fidelity Multi'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, Fidelity Multi'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 Fidelity Multi Alt Equity.
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