Fidelity Freedom Correlations

FPIFX Fund  USD 16.86  0.06  0.36%   
The current 90-days correlation between Fidelity Freedom Index and Fidelity Freedom Index is 0.99 (i.e., No risk reduction). 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 Index and DJI is 0.66 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Freedom Index 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 Index. 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 census.

Moving together with Fidelity Mutual Fund

  1.0VTWNX Vanguard Target RetiPairCorr
  1.0FSNOX Fidelity Freedom 2020PairCorr
  1.0PARBX Trowe Price RetirementPairCorr
  1.0FFFDX Fidelity Freedom 2020PairCorr
  1.0FATKX Fidelity Freedom 2020PairCorr
  1.0AACTX American Funds 2020PairCorr
  1.0CCCTX American Funds 2020PairCorr
  0.94ISIAX Voya Strategic IncomePairCorr
  0.98FASCX Franklin K2 AlternativePairCorr
  0.98HBLYX Hartford BalancedPairCorr
  1.0FFEGX Fidelity Freedom IndexPairCorr
  0.94PSHAX Short Term FundPairCorr
  0.98LEVIX Lazard Equity CentratedPairCorr
  0.95SPSDX Sterling Capital BehPairCorr
  0.98FNILX Fidelity Zero LargePairCorr
  0.97CSRYX Columbia Select LargePairCorr
  1.0SWYAX Schwab Target 2010PairCorr
  0.96DCEMX Dunham Emerging MarketsPairCorr
  1.0RRTLX T Rowe PricePairCorr
  0.63KAGCX Kensington Dynamic GrowthPairCorr

Related Correlations Analysis

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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.