Correlation Between Fidelity Freedom and Absolute Capital
Can any of the company-specific risk be diversified away by investing in both Fidelity Freedom and Absolute Capital 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 Freedom and Absolute Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Freedom Income and Absolute Capital Opportunities, you can compare the effects of market volatilities on Fidelity Freedom and Absolute Capital 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 Freedom with a short position of Absolute Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Freedom and Absolute Capital.
Diversification Opportunities for Fidelity Freedom and Absolute Capital
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Absolute is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Freedom Income and Absolute Capital Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Capital Opp and Fidelity Freedom 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 Freedom Income are associated (or correlated) with Absolute Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Capital Opp has no effect on the direction of Fidelity Freedom i.e., Fidelity Freedom and Absolute Capital go up and down completely randomly.
Pair Corralation between Fidelity Freedom and Absolute Capital
Assuming the 90 days horizon Fidelity Freedom Income is expected to generate 0.39 times more return on investment than Absolute Capital. However, Fidelity Freedom Income is 2.57 times less risky than Absolute Capital. It trades about 0.11 of its potential returns per unit of risk. Absolute Capital Opportunities is currently generating about -0.03 per unit of risk. If you would invest 1,130 in Fidelity Freedom Income on September 1, 2025 and sell it today you would earn a total of 11.00 from holding Fidelity Freedom Income or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Freedom Income vs. Absolute Capital Opportunities
Performance |
| Timeline |
| Fidelity Freedom Income |
| Absolute Capital Opp |
Fidelity Freedom and Absolute Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Freedom and Absolute Capital
The main advantage of trading using opposite Fidelity Freedom and Absolute Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Freedom position performs unexpectedly, Absolute Capital 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 Absolute Capital will offset losses from the drop in Absolute Capital's long position.| Fidelity Freedom vs. First Eagle Gold | Fidelity Freedom vs. World Precious Minerals | Fidelity Freedom vs. Deutsche Gold Precious | Fidelity Freedom vs. Gold And Precious |
| Absolute Capital vs. Pgim Jennison Technology | Absolute Capital vs. Columbia Global Technology | Absolute Capital vs. Janus Global Technology | Absolute Capital vs. Blackrock Science Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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