Fidelity Freedom 2045 Fund Volatility

FJTKX Fund  USD 13.01  0.08  0.62%   
We consider Fidelity Freedom very steady. Fidelity Freedom 2045 secures Sharpe Ratio (or Efficiency) of 0.24, which denotes the fund had a 0.24% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Fidelity Freedom 2045, which you can use to evaluate the volatility of the entity. Please confirm Fidelity Freedom's Mean Deviation of 0.4701, downside deviation of 0.6508, and Coefficient Of Variation of 452.02 to check if the risk estimate we provide is consistent with the expected return of 0.15%. Key indicators related to Fidelity Freedom's volatility include:
360 Days Market Risk
Chance Of Distress
360 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.
  

Fidelity Freedom 2045 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 Volatility

This 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 Volatility

This 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.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Fidelity Freedom 2045 Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Fidelity Freedom Projected Return Density Against Market

Assuming the 90 days horizon the mutual fund has the beta coefficient of 1.0037 . This usually indicates Fidelity Freedom 2045 market returns are sensitive to returns on the market. As the market goes up or down, Fidelity Freedom is expected to follow.
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.
Fidelity Freedom 2045 has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
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:

Industry

Specific 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 environment

When 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 Performance

Sometimes 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

Assuming the 90 days horizon the coefficient of variation of Fidelity Freedom is 417.37. The daily returns are distributed with a variance of 0.38 and standard deviation of 0.61. The mean deviation of Fidelity Freedom 2045 is currently at 0.47. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.0009
β
Beta against NYSE Composite1.00
σ
Overall volatility
0.61
Ir
Information ratio -0.0007

Fidelity Freedom Mutual Fund Return Volatility

Fidelity 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 0.6126% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

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. The adviser allocates its assets according to a neutral asset allocation strategy shown in the glide path below that adjusts over time until it reaches an allocation similar to that of the Fidelity Freedom Income Fund, approximately 10 to 19 years after the year 2045.
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 better

Higher 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 2045 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 2045 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 2045 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.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Fidelity Freedom Investment Opportunity

Fidelity Freedom 2045 has a volatility of 0.61 and is 1.07 times more volatile than NYSE Composite. 5 percent of all equities and portfolios are less risky than Fidelity Freedom. You can use Fidelity Freedom 2045 to enhance the returns of your portfolios. The mutual fund experiences a moderate upward volatility. Check odds of Fidelity Freedom to be traded at $14.31 in 90 days.

Almost no diversification

The correlation between FIDELITY FREEDOM 2045 and NYA is 0.92 (i.e., Almost no diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY FREEDOM 2045 and NYA in the same portfolio, assuming nothing else is changed.

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 2045.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fidelity Freedom 2045. 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 industry.
You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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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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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.