Fidelity Freedom Index Fund Volatility

FQIPX Fund  USD 33.66  0.17  0.51%   
Below is Fidelity Freedom's volatility profile -- how wide the price swings have been and how that compares with the market. The fund shows very low price volatility over the last 3 months.

Sharpe Ratio = 0.0776

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Fidelity Freedom Index (FQIPX) recorded a Market Risk Adjusted Performance of 0.1%, a Risk of 0.97, and a Risk Adjusted Performance of 0.1%. At roughly 6% of its observed historical range, the fund is trading within its prior trend boundaries.
Key indicators related to Fidelity Freedom's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity

Key risk metrics for Fidelity Freedom (3 Months):

 Beta
0.97
 Alpha
0.09
 Risk
0.97
 Sharpe Ratio
0.08
 Expected Return
0.08

Assets With Similar Volatility

  0.96FPTKX Fidelity Freedom 2015PairCorr
  0.78FQITX Fidelity Salem StreetPairCorr
  0.89FRBJX Fidelity Advisor FreedomPairCorr
  0.89FRBKX Fidelity Advisor FreedomPairCorr
  0.89FRBVX Fidelity Freedom IndexPairCorr
  0.89FRBWX Fidelity Freedom IndexPairCorr
  0.89FRBYX Fidelity Freedom BlendPairCorr
  0.89FRCYX Fidelity Sustainable TargetPairCorr
  0.89FRDCX Fidelity Sustainable TargetPairCorr
  0.89FRDEX Fidelity Sustainable TargetPairCorr
  0.89FRGAX Growth Allocation IndexPairCorr
  0.78FRINX Fidelity Real EstatePairCorr
  0.77FRIOX Fidelity Real EstatePairCorr
  0.89FRLPX Fidelity Freedom IndexPairCorr
  0.85FRQHX Fidelity Managed RetirementPairCorr
  0.85FRQKX Fidelity Managed RetirementPairCorr
  0.89FAASX Fidelity Asset ManagerPairCorr
  0.88FRVEX Fidelity Advisor RealPairCorr
  0.88FRVHX Fidelity Advisor RealPairCorr
  0.81FADCX Fidelity Advisor DiversifiedPairCorr
  0.86FAFAX Fidelity Advisor FreedomPairCorr
  0.89FRYBX Fidelity Balanced AllocationPairCorr
  0.65FTF Franklin Templeton LimitedPairCorr
  0.84FAIDX Fidelity International DiscoveryPairCorr
  0.88FAMKX Fidelity Advisor EmergingPairCorr
  0.89FSAAX Fidelity Asset ManagerPairCorr

Sensitivity To Market

Fidelity Freedom Index exhibits a beta of 0.97, representing its market-relative sensitivity. This coefficient separates systematic risk from company-specific volatility. Total return dispersion is approximately 0.97%. Fidelity Freedom Index return patterns over the selected horizon reflect a very low level of variability, based on dispersion and downside-focused statistics. Standard deviation is near 0.97%. Fund volatility is generally driven by asset allocation rather than individual headline events. Portfolio turnover and allocation changes alter measured dispersion over time.
Current 90-day Fidelity Freedom correlation with market (Dow Jones Industrial)
α0.09   β0.97
3 Months Beta |Fidelity Freedom Index Demand Trend
Current 90-day Fidelity Freedom correlation with market (Dow Jones Industrial)

Downside Risk

For Fidelity Freedom, the standard deviation figure expresses the observed spread of daily returns over the selected period. The magnitude of Fidelity Freedom standard deviation determines where it falls on the volatility spectrum relative to peers.
Standard Deviation
    
  0.97  
Distinguishing between standard deviation and downside deviation sharpens the risk picture for Fidelity Freedom. Standard deviation reflects total return dispersion for Fidelity Freedom, while downside deviation captures only the adverse portion of Fidelity Freedom's returns. Fidelity Freedom Index (FQIPX) recorded a Downside Deviation of 0.89, a Downside Variance of 0.79, and a Maximum Drawdown of 3.90.

Mutual Fund Volatility Analysis

For Fidelity Freedom, understanding volatility is essential to assessing portfolio risk contribution. It indicates how dramatically Fidelity Freedom's price swings over a specific time horizon.
Transformation
This analysis covers sixty-one data points across the selected time horizon. The Average Price transformation calculates the mean of Fidelity Freedom Index's open, high, low, and close for each trading period. By incorporating all four price components equally, it provides a balanced representation of each period's trading activity. Compared to using the closing price alone, the average price reduces the influence of end-of-day positioning and can serve as a smoother input for other technical indicators.

Projected Return Density Against Market

Based on a 90-day horizon, Fidelity Freedom has a beta of 0.9654. This usually indicates Fidelity Freedom Index market returns are sensitive to returns on the market. As the market goes up or down, Fidelity Freedom tends to follow.
The risk profile of Fidelity Freedom includes exposure to market fluctuations and company or sector-specific developments. Systematic components persist despite diversification. Fidelity Freedom Index (FQIPX) recorded a Downside Deviation of 0.89, a Mean Deviation of 0.73, and a Semi Deviation of 0.80.
Fidelity Freedom Index has an alpha of 0.087, implying that it can generate a 0.087 percent excess return over Dow Jones Industrial after adjusting for the inherent market risk (beta).
   Predicted Return Distribution   
       Density  

Mutual Fund Risk Measures

Based on a 90-day horizon, the coefficient of variation of Fidelity Freedom is 1289.47. The daily returns are distributed with a variance of 0.95 and standard deviation of 0.97. The mean deviation of Fidelity Freedom Index is currently at 0.73. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.92
α
Alpha over Dow Jones
0.09
β
Beta against Dow Jones0.97
σ
Overall volatility
0.97
Ir
Information ratio 0.09

Mutual Fund Return Volatility

Fidelity Freedom return volatility captures the typical daily swing in fund returns relative to the mean over the selected period. The fund has volatility of 0.9724% on return distribution over a 90-day investment horizon. Meanwhile, Dow Jones Industrial reported 0.9164% volatility on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


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

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High negative correlations

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Risk-Adjusted Indicators

Fidelity Freedom Mutual Fund can look attractive on recent price action while risk efficiency lags the peer group. Risk-adjusted metrics help compare Fidelity Freedom's efficiency and downside exposure against peers on a like-for-like basis. These indicators are quantitative in nature and measure volatility and risk-adjusted expected returns across different positions.

Risk Metrics, Assumptions & Methodology

NAV dispersion for Fidelity Freedom measures the spread of periodic returns around the mean, reflecting exposure variability. Dispersion compression can indicate low-information regimes where prices drift on thin conviction.

Fidelity Freedom Index analytics rely on fund disclosures and market reference feeds, with quality checks and normalization applied. Volatility and downside metrics are estimated from historical return dispersion.

Editorial review and methodology oversight provided by: Ellen Johnson, Member of Macroaxis Editorial Board

Volatility Profile Summary

Recent data suggests that Fidelity Freedom Index is more volatile than Dow Jones Industrial by approximately 1.05x over the selected horizon. This differential reflects the relative dispersion of returns and frames how the asset responds to broader market conditions. Observed price behavior indicates modest directional movement within the current volatility regime. Across the current 90-day horizon, that places the security below 8% of the broader equity and portfolio universe on a pure volatility basis. This positioning reflects relative dispersion compared to peers rather than extreme instability.

Fidelity Freedom Index with characteristics aligned to broad market upside participation. This price-change note interprets the latest move in the context of short-horizon trading behavior. It gains reliability when combined with broader risk controls and volatility-adjusted analysis. a moderate upward price movement. Return distributions derived from historical modeling outline a range of potential outcomes over the selected 90-day horizon. View Fidelity Freedom probability analysis.

Minimal diversification benefit
For the present investment horizon, the measured correlation between Fidelity Freedom and Dow Jones stands at 0.91, or Minimal diversification benefit. In portfolio terms, the overlap shows how much shared movement remains after combining both positions.

Additional Risk Indicators

A broader risk-indicator set for Fidelity Freedom Index extends the analysis beyond standard volatility and risk measures. This is most informative when assessing whether the current opportunity is being compensated with reasonable risk.

Fidelity Freedom Suggested Diversification Pairs

A paired position built around Fidelity Freedom Index reduces directional market exposure while expressing a relative-value view. This structure emphasizes relative performance differences between paired assets rather than broad market direction.
While pairing positions reduces portfolio risk, some forms of risk persist no matter which instruments are combined. No matter how well a pair is constructed around Fidelity Freedom, market-wide risk remains. What pair trading can address is Fidelity Freedom's unsystematic risk - the portion driven by company or sector-specific factors rather than broad market forces.