Fidelity Mutual Fund Alpha and Beta Analysis

FATKX
 Fund
  

USD 12.86  0.25  1.98%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Fidelity Freedom 2020. It also helps investors analyze the systematic and unsystematic risks associated with investing in Fidelity Freedom over a specified time horizon. Remember, high Fidelity Freedom's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Please check Fidelity Freedom Backtesting, Portfolio Optimization, Fidelity Freedom Correlation, Fidelity Freedom Hype Analysis, Fidelity Freedom Volatility, Fidelity Freedom History and analyze Fidelity Freedom Performance.
  
Please note that although Fidelity Freedom alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Fidelity Freedom did 0.06  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Fidelity Freedom 2020 fund's relative risk over its benchmark. Fidelity Freedom 2020 has a beta of 0.025  . Let's try to break down what Fidelity's beta means in this case. As returns on the market increase, Fidelity Freedom returns are expected to increase less than the market. However, during the bear market, the loss on holding Fidelity Freedom will be expected to be smaller as well.
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Fidelity Freedom Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Fidelity Freedom market risk premium is the additional return an investor will receive from holding Fidelity Freedom long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Fidelity Freedom. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Fidelity Freedom's performance over market.
α-0.06   β0.025
90 days against DJI

Fidelity Freedom expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Fidelity Freedom's Buy-and-hold return. Our buy-and-hold chart shows how Fidelity Freedom performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Fidelity Freedom Market Price Analysis

Market price analysis indicators help investors to evaluate how Fidelity Freedom mutual fund reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Fidelity Freedom shares will generate the highest return on investment. By understating and applying Fidelity Freedom mutual fund market price indicators, traders can identify Fidelity Freedom position entry and exit signals to maximize returns.

Fidelity Freedom Return and Market Media

The median price of Fidelity Freedom for the period between Fri, Jul 8, 2022 and Thu, Oct 6, 2022 is 13.4 with a coefficient of variation of 3.18. The daily time series for the period is distributed with a sample standard deviation of 0.43, arithmetic mean of 13.38, and mean deviation of 0.34. The Fund did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About Fidelity Freedom Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Fidelity or other funds. Alpha measures the amount that position in Fidelity Freedom 2020 has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Fidelity Freedom in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Fidelity Freedom's short interest history, or implied volatility extrapolated from Fidelity Freedom options trading.

Build Portfolio with Fidelity Freedom

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

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Align your risk with return expectations

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please check Fidelity Freedom Backtesting, Portfolio Optimization, Fidelity Freedom Correlation, Fidelity Freedom Hype Analysis, Fidelity Freedom Volatility, Fidelity Freedom History and analyze Fidelity Freedom Performance. You can also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Complementary Tools for analysis

When running Fidelity Freedom 2020 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 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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Fidelity Freedom technical mutual fund analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, fund market cycles, or different charting patterns.
A focus of Fidelity Freedom technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Fidelity Freedom trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...