Marsh McLennan Correlations

MMC Stock

USD 236.64 2.02 0.86%

The current 90-days correlation between Marsh McLennan Companies and Arthur J Gallagher is -0.14 (i.e., Good diversification). The correlation of Marsh McLennan is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Marsh McLennan Correlation With Market

Weak diversification

The correlation between Marsh McLennan Companies and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Marsh McLennan Companies and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Marsh McLennan Companies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

Moving together with Marsh Stock

0.97	AJG	Arthur J Gallagher Sell-off Trend	Pair Corr
0.99	AON	Aon PLC	Pair Corr
0.94	BRO	Brown Brown	Pair Corr
0.86	WTW	Willis Towers Watson	Pair Corr
0.9	GSHD	Goosehead Insurance Normal Trading	Pair Corr
0.88	V	Visa Class A	Pair Corr
0.76	BK	Bank of New York	Pair Corr
0.86	DB	Deutsche Bank AG	Pair Corr
0.89	GL	Globe Life	Pair Corr

Moving against Marsh Stock

0.71	BX	Blackstone Group	Pair Corr
0.7	ZBAO	Zhibao Technology Class	Pair Corr
0.7	AIFU	Fanhua Inc Symbol Change	Pair Corr
0.67	DHIL	Diamond Hill Investment	Pair Corr
0.64	RELI	Reliance Global Group	Pair Corr
0.64	AX	Axos Financial	Pair Corr
0.47	RELIW	Reliance Global Group	Pair Corr
0.42	TIRX	Tian Ruixiang Holdings	Pair Corr
0.87	LC	LendingClub Corp	Pair Corr
0.74	CM	Canadian Imperial Bank	Pair Corr
0.74	WD	Walker Dunlop	Pair Corr
0.65	KB	KB Financial Group	Pair Corr
0.58	RY	Royal Bank	Pair Corr
0.56	CG	Carlyle Group Normal Trading	Pair Corr
0.5	PX	P10 Inc	Pair Corr
0.49	MC	Moelis Normal Trading	Pair Corr
0.48	RF	Regions Financial Normal Trading	Pair Corr
0.44	SF	Stifel Financial	Pair Corr

Related Correlations Analysis

	AJG	WTW	BRO	ERIE	AON	BRP	FANH	CRVL
AJG		0.8	0.92	0.31	0.97	0.0	0.0	-0.19	AJG
WTW	0.8		0.82	0.3	0.85	0.0	0.0	-0.18	WTW
BRO	0.92	0.82		0.47	0.93	0.0	0.0	-0.41	BRO
ERIE	0.31	0.3	0.47		0.37	0.0	0.0	-0.29	ERIE
AON	0.97	0.85	0.93	0.37		0.0	0.0	-0.18	AON
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	-0.19	-0.18	-0.41	-0.29	-0.18	0.0	0.0		CRVL
	AJG	WTW	BRO	ERIE	AON	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

AON	+ 0.97	AJG
AON	+ 0.93	BRO
BRO	+ 0.92	AJG
AON	+ 0.85	WTW
BRO	+ 0.82	WTW
WTW	+ 0.8	AJG

High negative correlations

CRVL	- 0.41	BRO
CRVL	- 0.29	ERIE
CRVL	- 0.19	AJG
CRVL	- 0.18	AON
CRVL	- 0.18	WTW
CRVL	- 0.0	FANH

Risk-Adjusted Indicators

There is a big difference between Marsh Stock performing well and Marsh McLennan 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 Marsh McLennan'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	1.02	0.24	0.18	3.78	1.23	(1.05)	2.05	(1.87)	6.86
WTW	0.88	0.13	0.14	0.33	0.93	(1.00)	2.02	(1.66)	5.93
BRO	0.83	0.24	0.24	0.56	0.77	(0.89)	1.93	(1.45)	4.81
ERIE	1.49	(0.01)	0.00	(0.05)	0.00	0.00	3.22	(4.13)	11.24
AON	0.82	0.14	0.18	0.33	0.75	(0.95)	1.48	(1.41)	4.21
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	1.78	(0.07)	0.00	(0.08)	0.00	0.00	3.43	(4.37)	12.81

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