Stock Price Trends

Aon PLC (AON)

Aon plc is a multinational professional services firm that sells a range of financial risk-mitigation products, including insurance, pension administration, and health-insurance plans.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 4.15% per annum.
  • AON price at the close of July 10, 2025 was $359.00 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 10.12% per annum.
  • AON price at the close of July 10, 2025 was inside the secondary price channel.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of AON price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: August 10, 2021
End date: August 20, 2024

a = 5.5893

b = 0.0001

s = 0.0613

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 4.15%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0613) – 1
= 27.77%

August 10, 2021 calculations

Top border of price channel:

Exp(Y272)
= Exp(a + b × X272 + 2 × s)
= Exp(a + b × 393 + 2 × s)
= Exp(5.5893 + 0.0001 × 393 + 2 × 0.0613)
= Exp(5.7556)
= $315.97

Bottom border of price channel:

Exp(Y272)
= Exp(a + b × X272 – 2 × s)
= Exp(a + b × 393 – 2 × s)
= Exp(5.5893 + 0.0001 × 393 – 2 × 0.0613)
= Exp(5.5106)
= $247.29

August 20, 2024 calculations

Top border of price channel:

Exp(Y1,033)
= Exp(a + b × X1,033 + 2 × s)
= Exp(a + b × 1,499 + 2 × s)
= Exp(5.5893 + 0.0001 × 1,499 + 2 × 0.0613)
= Exp(5.8788)
= $357.37

Bottom border of price channel:

Exp(Y1,033)
= Exp(a + b × X1,033 – 2 × s)
= Exp(a + b × 1,499 – 2 × s)
= Exp(5.5893 + 0.0001 × 1,499 – 2 × 0.0613)
= Exp(5.6337)
= $279.69

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 4.15% per annum.
  • AON price at the close of July 10, 2025 was $359.00 and was inside the primary price channel.

Secondary Trend

Start date: April 29, 2022
End date: July 10, 2025

a = 5.4316

b = 0.0003

s = 0.0660

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0003) – 1
= 10.12%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0660) – 1
= 30.20%

April 29, 2022 calculations

Top border of price channel:

Exp(Y454)
= Exp(a + b × X454 + 2 × s)
= Exp(a + b × 655 + 2 × s)
= Exp(5.4316 + 0.0003 × 655 + 2 × 0.0660)
= Exp(5.7366)
= $310.00

Bottom border of price channel:

Exp(Y454)
= Exp(a + b × X454 – 2 × s)
= Exp(a + b × 655 – 2 × s)
= Exp(5.4316 + 0.0003 × 655 – 2 × 0.0660)
= Exp(5.4726)
= $238.09

July 10, 2025 calculations

Top border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(5.4316 + 0.0003 × 1,823 + 2 × 0.0660)
= Exp(6.0451)
= $422.05

Bottom border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(5.4316 + 0.0003 × 1,823 – 2 × 0.0660)
= Exp(5.7812)
= $324.15

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 10.12% per annum.
  • AON price at the close of July 10, 2025 was inside the secondary price channel.