Correlation Between Fidelity Large and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Fidelity Large 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 Fidelity Large and Fidelity Freedom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Large Cap and Fidelity Freedom Income, you can compare the effects of market volatilities on Fidelity Large 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 Fidelity Large with a short position of Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Large and Fidelity Freedom.
Diversification Opportunities for Fidelity Large and Fidelity Freedom
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Fidelity is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Large Cap and Fidelity Freedom Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Income and Fidelity Large 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 Fidelity Large Cap 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 Income has no effect on the direction of Fidelity Large i.e., Fidelity Large and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Fidelity Large and Fidelity Freedom
Assuming the 90 days horizon Fidelity Large Cap is expected to generate 3.58 times more return on investment than Fidelity Freedom. However, Fidelity Large is 3.58 times more volatile than Fidelity Freedom Income. It trades about 0.13 of its potential returns per unit of risk. Fidelity Freedom Income is currently generating about 0.21 per unit of risk. If you would invest 1,750 in Fidelity Large Cap on September 2, 2025 and sell it today you would earn a total of 111.00 from holding Fidelity Large Cap or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Large Cap vs. Fidelity Freedom Income
Performance |
| Timeline |
| Fidelity Large Cap |
| Fidelity Freedom Income |
Fidelity Large and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Large and Fidelity Freedom
The main advantage of trading using opposite Fidelity Large and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Large 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.| Fidelity Large vs. California High Yield Municipal | Fidelity Large vs. Nuveen High Yield | Fidelity Large vs. Gmo High Yield | Fidelity Large vs. Tiaa Cref High Yield Fund |
| Fidelity Freedom vs. T Rowe Price | Fidelity Freedom vs. T Rowe Price | Fidelity Freedom vs. T Rowe Price | Fidelity Freedom vs. Franklin Lifesmart 2045 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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