We consider Fidelity Freedom very steady. Fidelity Freedom Index secures Sharpe Ratio (or Efficiency) of 0.022, which denotes the fund had 0.022% return per unit of risk over the last 3 months. Our standpoint towards predicting the volatility of a fund is to use all available market data together with fund-specific technical indicators that cannot be diversified away. We have found twenty-four technical indicators for Fidelity Freedom Index, which you can use to evaluate the future volatility of the entity. Please confirm Fidelity Freedom's Coefficient Of Variation of 2019.06, mean deviation of 0.2743, and Downside Deviation of 0.6459 to check if the risk estimate we provide is consistent with the expected return of 0.0106%. Key indicators related to Fidelity Freedom's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Fidelity Freedom Mutual 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 Freedom volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Fidelity Freedom can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Fidelity Freedom at lower prices. For example, an investor can purchase Fidelity stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Fidelity Freedom's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Fidelity Mutual Fund
Fidelity Freedom Market Sensitivity And Downside Risk
Fidelity Freedom's beta coefficient measures the volatility of Fidelity mutual fund compared to the systematic risk of the entire stock 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 mutual fund's returns against your selected market. In other words, Fidelity Freedom's beta of -0.11 provides an investor with an approximation of how much risk Fidelity Freedom mutual fund can potentially add to one of your existing portfolios.Fidelity Freedom Index exhibits relatively low volatility with skewness of -3.12 and kurtosis of 18.21. However, we advice investors to further investigate Fidelity Freedom Index to ensure all market statistics is disseminated and is consistent with investors' estimations about Fidelity Freedom upside potential. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fidelity Freedom's mutual 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 Freedom's mutual 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 stocks as prices fall. 3 Months Beta |Analyze Fidelity Freedom Index Demand TrendCheck current 90 days Fidelity Freedom correlation with market (NYSE Composite)
Fidelity standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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.
It is essential to understand the difference between upside risk (as represented by Fidelity Freedom's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Fidelity Freedom's daily returns or price. Since the actual investment returns on holding a position in fidelity mutual 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 Freedom.
Fidelity Freedom Index Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Fidelity Freedom fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Fidelity Freedom's price changes. Investors will then calculate the volatility of Fidelity Freedom's mutual fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A mutual 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 Freedom's volatility:
Historical VolatilityThis type of fund volatility measures Fidelity Freedom's fluctuations based on previous trends. It's commonly used to predict Fidelity Freedom's future behavior based on its past. However, it cannot conclusively determine the future direction of the mutual fund.
Implied VolatilityThis type of volatility provides a positive outlook on future price fluctuations for Fidelity Freedom'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 Freedom's to be redeemed at a future date.
Fidelity Freedom Projected Return Density Against MarketAssuming the 90 days horizon Fidelity Freedom Index has a beta of -0.1056 . This usually indicates as returns on benchmark increase, returns on holding Fidelity Freedom are expected to decrease at a much lower rate. During the bear market, however, Fidelity Freedom Index 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 Freedom or Fidelity Investments 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 Freedom's price will be affected by overall mutual 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.The company has an alpha of 0.0287, implying that it can generate a 0.0287 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Fidelity Freedom's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how fidelity mutual fund's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.
What Drives a Fidelity Freedom Price Volatility?Several factors can influence a fund's market volatility:
IndustrySpecific 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 environmentWhen 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 PerformanceSometimes 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 Freedom Mutual Fund Risk Measures
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 Freedom or Fidelity Investments 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 Freedom's price will be affected by overall mutual 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. Assuming the 90 days horizon the coefficient of variation of Fidelity Freedom is 4542.89. The daily returns are distributed with a variance of 0.23 and standard deviation of 0.48. The mean deviation of Fidelity Freedom Index is currently at 0.28. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
Fidelity Freedom Mutual Fund Return VolatilityFidelity Freedom historical daily return volatility represents how much of Fidelity Freedom fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.4819% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6535% volatility on return distribution over the 90 days horizon.
About Fidelity Freedom Volatility
Volatility is a rate at which the price of Fidelity Freedom or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Fidelity Freedom may increase or decrease. In other words, similar to Fidelity's beta indicator, it measures the risk of Fidelity Freedom and helps estimate the fluctuations that may happen in a short period of time. So if prices of Fidelity Freedom fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.Please read more on our technical analysis page.
The fund invests in a combination of Fidelity U.S. equity funds, international equity funds, bond funds, and short-term funds , each of which seeks to provide investment results that correspond to the total return of a specific index.
Fidelity Freedom's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Fidelity Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Fidelity Freedom's price varies over time.
3 ways to utilize Fidelity Freedom's volatility to invest betterHigher Fidelity Freedom's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Fidelity Freedom Index fund is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Fidelity Freedom Index fund volatility can provide helpful information for making investment decisions in the following ways:
- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Fidelity Freedom Index investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Fidelity Freedom's fund can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Fidelity Freedom's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Fidelity Freedom Investment OpportunityNYSE Composite has a standard deviation of returns of 0.65 and is 1.35 times more volatile than Fidelity Freedom Index. 4 of all equities and portfolios are less risky than Fidelity Freedom. Compared to the overall equity markets, volatility of historical daily returns of Fidelity Freedom Index is lower than 4 () of all global equities and portfolios over the last 90 days. Use Fidelity Freedom Index to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The mutual fund experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Fidelity Freedom to be traded at $12.45 in 90 days.
Fidelity Freedom Additional Risk Indicators
The analysis of Fidelity Freedom'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 Freedom's investment and either accepting that risk or mitigating it. Along with some common measures of Fidelity Freedom mutual 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.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential mutual funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Fidelity Freedom 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 Freedom 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 Freedom'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 Freedom'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 Freedom Index.
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 persons.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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When running Fidelity Freedom's price analysis, check to measure Fidelity Freedom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fidelity Freedom is operating at the current time. Most of Fidelity Freedom's value examination focuses on studying past and present price action to predict the probability of Fidelity Freedom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fidelity Freedom's price. Additionally, you may evaluate how the addition of Fidelity Freedom to your portfolios can decrease your overall portfolio volatility.
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