Fidelity Freedom Correlations

FZTKX Fund  USD 14.41  0.09  0.62%   
The current 90-days correlation between Fidelity Freedom 2050 and Gmo Global Equity is -0.02 (i.e., Good diversification). 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 correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Fidelity Freedom Correlation With Market

Poor diversification

The correlation between Fidelity Freedom 2050 and DJI is 0.69 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Freedom 2050 and DJI 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 2050. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in industry.

Moving together with Fidelity Mutual Fund

  0.83FPURX Fidelity PuritanPairCorr
  0.83FPUKX Fidelity PuritanPairCorr
  0.77FQIFX Fidelity Freedom IndexPairCorr
  0.93FQIPX Fidelity Freedom IndexPairCorr
  1.0FQLSX Fidelity Flex FreedomPairCorr
  0.91FRAGX Aggressive GrowthPairCorr
  0.91FRGAX Growth Allocation IndexPairCorr
  0.93FRLPX Fidelity Freedom IndexPairCorr
  0.97FAASX Fidelity Asset ManagerPairCorr
  0.92FAAIX Fidelity Asset ManagerPairCorr
  0.74FABLX Fidelity Advisor BalancedPairCorr
  0.73FABCX Fidelity Advisor BalancedPairCorr
  0.72FACVX Fidelity VertiblePairCorr
  0.73FACPX Fidelity Advisor Sumer Steady GrowthPairCorr
  0.88FACNX Fidelity CanadaPairCorr
  0.84FACGX Fidelity Advisor GrowthPairCorr

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   
SILLXAUUIX
HULEXAUUIX
SILLXHULEX
SILLXAPDNX
APDNXHULEX
APDNXAUUIX
  
High negative correlations   
AECXXSILLX
AECXXAPDNX
AECXXLOGRX
AECXXHULEX
AECXXAUUIX
AECXXGMADX

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.