AJG vs IPGP: Correlation
How closely do Arthur J. Gallagher & Co. (AJG) and IPG Photonics Corporation (IPGP) trade together? Their weekly returns over three years give a correlation of -0.20, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AJG and IPGP?
Across a 3-year window, the weekly returns of AJG and IPGP correlate at -0.20, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.39 versus -0.20 over 3 years. Stretching to 5 years gives -0.06, with an annualized covariance of -246.1 %².
Within AJG's tracked universe of 32 assets, IPGP comes in at #23 by 3-year correlation. Twelve-month performance is nearly a tie, at -11.9% for AJG and -7.6% for IPGP. Note the risk asymmetry: IPGP runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 IPGP: side by side
| AJG (Arthur J. Gallagher & Co.) | IPGP (IPG Photonics Corporation) | |
|---|---|---|
| 1-year return | -11.9% | -7.6% |
| 5-year return | +91.1% | -55.1% |
| Volatility (ann.) | 25.0% | 48.0% |
| Beta vs S&P 500 | 0.36 | 1.24 |
| Max drawdown (3Y) | -44.4% | -55.1% |
| Market cap | $66.7B | $3.3B |
| P/E (trailing) | 43.1 | 113.6 |
| Dividend yield | 1.02% | 0.00% |
| Sector / category | Financials | US Listed |
Year-by-year returns
| Year | AJG | IPGP |
|---|---|---|
| 2022 | +12.4% | -45.0% |
| 2023 | +20.5% | +14.7% |
| 2024 | +27.3% | -33.0% |
| 2025 | -8.0% | -1.5% |
| 2026 | +1.2% | +7.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AJG and IPGP good diversifiers for each other?
Yes. With a correlation of -0.20, AJG and IPGP have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AJG and IPGP?
Using weekly returns as of 2026-08-27: -0.20 over 3 years, with -0.39 over the last year and -0.06 over 5 years.
Is IPGP a good diversifier for AJG?
Yes. With a correlation of -0.20, AJG and IPGP have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
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-ipgp.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ajg-vs-ipgp/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AJG correlations · IPGP correlations
