Correlation Between Aon PLC and CRAWFORD +
Can any of the company-specific risk be diversified away by investing in both Aon PLC and CRAWFORD + 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 Aon PLC and CRAWFORD + into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aon PLC and CRAWFORD A NV, you can compare the effects of market volatilities on Aon PLC and CRAWFORD + 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 Aon PLC with a short position of CRAWFORD +. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aon PLC and CRAWFORD +.
Diversification Opportunities for Aon PLC and CRAWFORD +
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aon and CRAWFORD is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aon PLC and CRAWFORD A NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRAWFORD A NV and Aon PLC 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 Aon PLC are associated (or correlated) with CRAWFORD +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRAWFORD A NV has no effect on the direction of Aon PLC i.e., Aon PLC and CRAWFORD + go up and down completely randomly.
Pair Corralation between Aon PLC and CRAWFORD +
Assuming the 90 days horizon Aon PLC is expected to under-perform the CRAWFORD +. But the stock apears to be less risky and, when comparing its historical volatility, Aon PLC is 2.78 times less risky than CRAWFORD +. The stock trades about -0.1 of its potential returns per unit of risk. The CRAWFORD A NV is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,050 in CRAWFORD A NV on October 11, 2024 and sell it today you would lose (10.00) from holding CRAWFORD A NV or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aon PLC vs. CRAWFORD A NV
Performance |
| Timeline |
| Aon PLC |
| CRAWFORD A NV |
Aon PLC and CRAWFORD + Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aon PLC and CRAWFORD +
The main advantage of trading using opposite Aon PLC and CRAWFORD + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aon PLC position performs unexpectedly, CRAWFORD + 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 CRAWFORD + will offset losses from the drop in CRAWFORD +'s long position.| Aon PLC vs. Highlight Communications AG | Aon PLC vs. China Communications Services | Aon PLC vs. Singapore Telecommunications Limited | Aon PLC vs. Chunghwa Telecom Co |
| CRAWFORD + vs. Forsys Metals Corp | CRAWFORD + vs. Aluminum of | CRAWFORD + vs. GALENA MINING LTD | CRAWFORD + vs. SERI INDUSTRIAL EO |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |