ADP vs TER: Correlation
Measured on weekly returns over the past three years, Automatic Data Processing (ADP) and Teradyne (TER) carry a correlation of -0.21, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADP and TER?
Over the past 3 years, ADP and TER moved with a correlation of -0.21, which is negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.58 versus -0.21 over 3 years. Over 5 years the correlation is 0.06, and the annualized covariance of weekly returns is -242.5 %².
By 3-year correlation, TER places #37 of the 43 assets tracked against ADP. Correlation aside, the last 12 months split them widely, with TER ahead by 222.3 points (-3.5% versus +218.8%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.59 to 0.47. One caveat on sizing: TER is 2.4 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 TER: side by side
| ADP (Automatic Data Processing) | TER (Teradyne) | |
|---|---|---|
| 1-year return | -3.5% | +218.8% |
| 5-year return | +52.0% | +207.9% |
| Volatility (ann.) | 21.7% | 52.5% |
| Beta vs S&P 500 | 0.53 | 1.70 |
| Max drawdown (3Y) | -40.8% | -58.2% |
| Market cap | $113.1B | $58.2B |
| P/E (trailing) | 26.0 | 50.0 |
| Dividend yield | 2.36% | 0.14% |
| Sector / category | Industrials | Information Technology |
Year-by-year returns
| Year | ADP | TER |
|---|---|---|
| 2022 | -1.3% | -46.3% |
| 2023 | -0.2% | +24.8% |
| 2024 | +28.4% | +16.5% |
| 2025 | -10.2% | +54.4% |
| 2026 | +12.4% | +92.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ADP and TER good diversifiers for each other?
Yes. With a correlation of -0.21, ADP and TER have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between ADP and TER?
Using weekly returns as of 2026-08-27: -0.21 over 3 years, with -0.58 over the last year and 0.06 over 5 years.
Is TER a good diversifier for ADP?
Yes. With a correlation of -0.21, ADP and TER have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.21 mean?
A reading of -0.21 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/adp-vs-ter.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/adp-vs-ter/)
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Related comparisons
Hubs: ADP correlations · TER correlations
