Correlation Between One Choice and Fidelity Freedom

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both One Choice and Fidelity Freedom 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 One Choice and Fidelity Freedom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Choice Blend and Fidelity Freedom 2020, you can compare the effects of market volatilities on One Choice and Fidelity Freedom 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 One Choice with a short position of Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Choice and Fidelity Freedom.

Diversification Opportunities for One Choice and Fidelity Freedom

0.96
  Correlation Coefficient

Almost no diversification

The 3 months correlation between AAAOX and Fidelity is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding One Choice Blend and Fidelity Freedom 2020 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom 2020 and One Choice 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 One Choice Blend are associated (or correlated) with Fidelity Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom 2020 has no effect on the direction of One Choice i.e., One Choice and Fidelity Freedom go up and down completely randomly.

Pair Corralation between One Choice and Fidelity Freedom

Assuming the 90 days horizon One Choice Blend is expected to under-perform the Fidelity Freedom. But the mutual fund apears to be less risky and, when comparing its historical volatility, One Choice Blend is 1.33 times less risky than Fidelity Freedom. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Fidelity Freedom 2020 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,310  in Fidelity Freedom 2020 on April 5, 2022 and sell it today you would earn a total of  19.00  from holding Fidelity Freedom 2020 or generate 1.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy69.96%
ValuesDaily Returns

One Choice Blend  vs.  Fidelity Freedom 2020

 Performance (%) 
      Timeline 
One Choice Blend 
AAAOX Performance
0 of 100
Over the last 90 days One Choice Blend has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest unfluctuating performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

AAAOX Price Channel

Fidelity Freedom 2020 
Fidelity Performance
0 of 100
Over the last 90 days Fidelity Freedom 2020 has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest unfluctuating performance, the Fund's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Fidelity Price Channel

One Choice and Fidelity Freedom Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with One Choice and Fidelity Freedom

The main advantage of trading using opposite One Choice and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Choice position performs unexpectedly, Fidelity Freedom 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 Freedom will offset losses from the drop in Fidelity Freedom's long position.

One Choice Blend

Pair trading matchups for One Choice

The idea behind One Choice Blend and Fidelity Freedom 2020 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Fidelity Freedom 2020

Pair trading matchups for Fidelity Freedom

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go