Fidelity Freedom Correlations

FQIPX Fund  USD 24.10  0.23  0.96%   
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 perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fidelity Freedom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fidelity Freedom Index moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Significant diversification

The correlation between Fidelity Freedom Index and NYA is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Freedom Index and NYA in the same portfolio, assuming nothing else is changed.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fidelity Freedom Index. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.
  
The ability to find closely correlated positions to Fidelity Freedom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fidelity Freedom when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fidelity Freedom - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fidelity Freedom Index to buy it.

Moving together with Fidelity Mutual Fund

  0.94FPTKX Fidelity Freedom 2015PairCorr
  0.97FPURX Fidelity PuritanPairCorr
  0.99FPUKX Fidelity PuritanPairCorr
  0.95FQIFX Fidelity Freedom IndexPairCorr
  0.92FQITX Fidelity Salem StreetPairCorr
  0.97FQLSX Fidelity Flex FreedomPairCorr
  1.0FRAGX Aggressive GrowthPairCorr
  0.84FRAMX Fidelity Me ReplacementPairCorr
  0.9FRASX Fidelity Me ReplacementPairCorr
  0.97FRGAX Growth Allocation IndexPairCorr
  0.71FRIFX Fidelity Real EstatePairCorr
  0.9FRIMX Fidelity Me ReplacementPairCorr
  0.68FRINX Fidelity Real EstatePairCorr
  0.62FRIOX Fidelity Real EstatePairCorr
  0.69FRIQX Fidelity Real EstatePairCorr
  0.86FRHMX Fidelity Managed RetPairCorr
  0.86FRKMX Fidelity Managed RetPairCorr

Related Correlations Analysis

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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   
FQIFXFPTKX
FRASXFPTKX
FPUKXFPURX
FRASXFQIFX
FQIFXFPURX
FPURXFPTKX
  
High negative correlations   
FRESXFPUKX
FRESXFPURX

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.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Fidelity Freedom without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Correlation Analysis

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Already Invested in Fidelity Freedom Index?

The danger of trading Fidelity Freedom Index is mainly related to its market volatility and Mutual Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Fidelity Freedom is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Fidelity Freedom. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Fidelity Freedom Index is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fidelity Freedom Index. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.
You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Please note, there is a significant difference between Fidelity Freedom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fidelity Freedom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fidelity Freedom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.