ADP vs AXON: Correlation
Measured on weekly returns over the past three years, Automatic Data Processing (ADP) and Axon Enterprise (AXON) carry a correlation of 0.42, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADP and AXON?
Across a 3-year window, the weekly returns of ADP and AXON correlate at 0.42, moderate. Lately the two have moved closer together, with the 1-year correlation at 0.52 versus 0.42 over 3 years. Stretching to 5 years gives 0.44, with an annualized covariance of 516.9 %².
By 3-year correlation, AXON places #27 of the 43 assets tracked against ADP. The last year tells two different stories: ADP led by 17.1 percentage points, -3.5% for ADP against -20.6% for AXON. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.08 to 0.56. Risk is not evenly split, since AXON carries 2.6 times the volatility of the other side.
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 AXON: side by side
| ADP (Automatic Data Processing) | AXON (Axon Enterprise) | |
|---|---|---|
| 1-year return | -3.5% | -20.6% |
| 5-year return | +52.0% | +216.9% |
| Volatility (ann.) | 21.7% | 57.4% |
| Beta vs S&P 500 | 0.53 | 1.51 |
| Max drawdown (3Y) | -40.8% | -60.3% |
| Market cap | $113.1B | $49.7B |
| P/E (trailing) | 26.0 | 250.5 |
| Dividend yield | 2.36% | 0.00% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | ADP | AXON |
|---|---|---|
| 2022 | -1.3% | +5.7% |
| 2023 | -0.2% | +55.7% |
| 2024 | +28.4% | +130.1% |
| 2025 | -10.2% | -4.4% |
| 2026 | +12.4% | +7.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ADP and AXON good diversifiers for each other?
Reasonably. At 0.42, ADP and AXON keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ADP and AXON?
As of 2026-08-27, the correlation of weekly returns between ADP and AXON is 0.42 over 3 years, 0.52 over 1 year and 0.44 over 5 years.
Is AXON a good diversifier for ADP?
Reasonably. At 0.42, ADP and AXON keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 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-axon.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/adp-vs-axon/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ADP correlations · AXON correlations
