ADP vs AJG: Correlation
Measured on weekly returns over the past three years, Automatic Data Processing (ADP) and Arthur J. Gallagher & Co. (AJG) carry a correlation of 0.55, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADP and AJG?
Across a 3-year window, the weekly returns of ADP and AJG correlate at 0.55, moderate. Recent behaviour matches the longer record: 0.65 over 1 year against 0.55 over 3. Stretching to 5 years gives 0.58, with an annualized covariance of 299.6 %².
Within ADP's tracked universe of 43 assets, AJG comes in at #12 by 3-year correlation. On 12-month performance ADP holds a 8.4-point edge, -3.5% against -11.9%. The relationship is regime-dependent: the rolling one-year correlation swung between 0.09 and 0.73 over the past three years, so this pair behaves very differently depending on the market environment.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ADP vs AJG: side by side
| ADP (Automatic Data Processing) | AJG (Arthur J. Gallagher & Co.) | |
|---|---|---|
| 1-year return | -3.5% | -11.9% |
| 5-year return | +52.0% | +91.1% |
| Volatility (ann.) | 21.7% | 25.0% |
| Beta vs S&P 500 | 0.53 | 0.36 |
| Max drawdown (3Y) | -40.8% | -44.4% |
| Market cap | $113.1B | $66.7B |
| P/E (trailing) | 26.0 | 43.1 |
| Dividend yield | 2.36% | 1.02% |
| Sector / category | Industrials | Financials |
Year-by-year returns
| Year | ADP | AJG |
|---|---|---|
| 2022 | -1.3% | +12.4% |
| 2023 | -0.2% | +20.5% |
| 2024 | +28.4% | +27.3% |
| 2025 | -10.2% | -8.0% |
| 2026 | +12.4% | +1.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ADP and AJG good diversifiers for each other?
Only partially. A correlation of 0.55 means ADP and AJG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ADP and AJG?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.65 over the last year and 0.58 over 5 years.
Is AJG a good diversifier for ADP?
Only partially. A correlation of 0.55 means ADP and AJG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.55 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/adp-vs-ajg.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/adp-vs-ajg/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ADP correlations · AJG correlations
