AJG vs CAT: Correlation
Measured on weekly returns over the past three years, Arthur J. Gallagher & Co. (AJG) and Caterpillar Inc. (CAT) carry a correlation of -0.20, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AJG and CAT?
On 3 years of weekly data the AJG/CAT correlation comes out at -0.20, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.43) runs below the 3-year figure (-0.20). The 5-year figure is 0.04, and annualized covariance runs at -145.9 %².
Among the 32 assets we track against AJG, CAT ranks #22 by 3-year correlation. The last year tells two different stories: CAT led by 102.4 percentage points, -11.9% for AJG against +90.5% for CAT. The relationship is regime-dependent: the rolling one-year correlation swung between -0.39 and 0.54 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.
AJG vs CAT: side by side
| AJG (Arthur J. Gallagher & Co.) | CAT (Caterpillar Inc.) | |
|---|---|---|
| 1-year return | -11.9% | +90.5% |
| 5-year return | +91.1% | +321.1% |
| Volatility (ann.) | 25.0% | 29.4% |
| Beta vs S&P 500 | 0.36 | 1.03 |
| Max drawdown (3Y) | -44.4% | -34.0% |
| Market cap | $66.7B | $375.6B |
| P/E (trailing) | 43.1 | 35.3 |
| Dividend yield | 1.02% | 0.75% |
| Sector / category | Financials | Industrials |
Year-by-year returns
| Year | AJG | CAT |
|---|---|---|
| 2022 | +12.4% | +18.6% |
| 2023 | +20.5% | +25.9% |
| 2024 | +27.3% | +24.7% |
| 2025 | -8.0% | +60.3% |
| 2026 | +1.2% | +43.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AJG and CAT good diversifiers for each other?
By historical standards, yes. A correlation of -0.20 means the two rarely move for the same reasons.
FAQ
What is the correlation between AJG and CAT?
As of 2026-08-27, the correlation of weekly returns between AJG and CAT is -0.20 over 3 years, -0.43 over 1 year and 0.04 over 5 years.
Is CAT a good diversifier for AJG?
By historical standards, yes. A correlation of -0.20 means the two rarely move for the same reasons.
What does a correlation of -0.20 mean?
On the −1 to +1 scale, -0.20 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ajg-vs-cat.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ajg-vs-cat/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AJG correlations · CAT correlations
