Correlation Between Blackrock Inflation and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Blackrock Inflation 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 Blackrock Inflation and Fidelity Freedom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Inflation Protected and Fidelity Freedom Blend, you can compare the effects of market volatilities on Blackrock Inflation 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 Blackrock Inflation with a short position of Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Inflation and Fidelity Freedom.
Diversification Opportunities for Blackrock Inflation and Fidelity Freedom
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and Fidelity is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Inflation Protected and Fidelity Freedom Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Blend and Blackrock Inflation 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 Blackrock Inflation Protected 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 Blend has no effect on the direction of Blackrock Inflation i.e., Blackrock Inflation and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Blackrock Inflation and Fidelity Freedom
Assuming the 90 days horizon Blackrock Inflation is expected to generate 22.15 times less return on investment than Fidelity Freedom. But when comparing it to its historical volatility, Blackrock Inflation Protected is 2.28 times less risky than Fidelity Freedom. It trades about 0.03 of its potential returns per unit of risk. Fidelity Freedom Blend is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,021 in Fidelity Freedom Blend on April 30, 2025 and sell it today you would earn a total of 126.00 from holding Fidelity Freedom Blend or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Inflation Protected vs. Fidelity Freedom Blend
Performance |
| Timeline |
| Blackrock Inflation |
| Fidelity Freedom Blend |
Blackrock Inflation and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Inflation and Fidelity Freedom
The main advantage of trading using opposite Blackrock Inflation and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Inflation 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.| Blackrock Inflation vs. Saat Tax Managed Aggressive | Blackrock Inflation vs. Ab High Income | Blackrock Inflation vs. Metropolitan West High | Blackrock Inflation vs. Siit High Yield |
| Fidelity Freedom vs. Praxis Small Cap | Fidelity Freedom vs. Siit Small Cap | Fidelity Freedom vs. Needham Small Cap | Fidelity Freedom vs. Qs Small Capitalization |
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 the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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