Aon PLC Correlations

AON Stock

USD 354.79 4.89 1.40%

The current 90-days correlation between Aon PLC and Arthur J Gallagher is 0.71 (i.e., Poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Aon PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aon PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Aon PLC Correlation With Market

Very weak diversification

The correlation between Aon PLC and DJI is 0.57 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Aon PLC and DJI in the same portfolio, assuming nothing else is changed.

Build AI portfolio with Aon Stock

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aon PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.

To learn how to invest in Aon Stock, please use our How to Invest in Aon PLC guide.

Moving together with Aon Stock

0.78	MMC	Marsh McLennan Companies	Pair Corr
0.79	WTW	Willis Towers Watson	Pair Corr
0.88	GSHD	Goosehead Insurance	Pair Corr
0.67	HUIZ	Huize Holding	Pair Corr
0.7	DHIL	Diamond Hill Investment Earnings Call Shortly	Pair Corr

Moving against Aon Stock

0.7	DIST	Distoken Acquisition	Pair Corr
0.42	KB	KB Financial Group	Pair Corr
0.41	CM	Canadian Imperial Bank	Pair Corr

Related Correlations Analysis

	AJG	BRO	WTW	ERIE	MMC	BRP	FANH	CRVL
AJG		0.87	0.45	0.36	0.77	0.0	0.0	-0.27	AJG
BRO	0.87		0.44	0.51	0.74	0.0	0.0	-0.5	BRO
WTW	0.45	0.44		0.46	0.65	0.0	0.0	-0.09	WTW
ERIE	0.36	0.51	0.46		0.42	0.0	0.0	-0.27	ERIE
MMC	0.77	0.74	0.65	0.42		0.0	0.0	-0.26	MMC
BRP	0.0	0.0	0.0	0.0	0.0		0.0	0.0	BRP
FANH	0.0	0.0	0.0	0.0	0.0	0.0		0.0	FANH
CRVL	-0.27	-0.5	-0.09	-0.27	-0.26	0.0	0.0		CRVL
	AJG	BRO	WTW	ERIE	MMC	BRP	FANH	CRVL

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

BRO	+ 0.87	AJG
MMC	+ 0.77	AJG
MMC	+ 0.74	BRO
MMC	+ 0.65	WTW
ERIE	+ 0.51	BRO
ERIE	+ 0.46	WTW

High negative correlations

CRVL	- 0.5	BRO
CRVL	- 0.27	ERIE
CRVL	- 0.27	AJG
CRVL	- 0.26	MMC
CRVL	- 0.09	WTW
CRVL	- 0.0	FANH

Risk-Adjusted Indicators

There is a big difference between Aon Stock performing well and Aon PLC Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Aon PLC's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
AJG	1.25	0.22	0.12	0.21	1.99	(1.20)	2.55	(2.78)	9.69
BRO	1.17	0.13	0.08	0.08	2.19	(1.02)	2.22	(2.82)	9.79
WTW	1.13	(0.01)	0.00	(0.16)	0.00	0.00	1.95	(2.52)	9.94
ERIE	1.88	(0.13)	0.00	0.39	0.00	0.00	4.41	(4.13)	17.17
MMC	1.07	0.11	0.09	0.04	1.86	(0.99)	1.93	(2.81)	8.90
BRP	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
FANH	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
CRVL	1.63	0.03	0.00	(0.11)	0.00	0.00	3.07	(4.35)	12.81

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