AJG vs PAYX: Correlation
Measured on weekly returns over the past three years, Arthur J. Gallagher & Co. (AJG) and Paychex (PAYX) carry a correlation of 0.50, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AJG and PAYX?
Across a 3-year window, the weekly returns of AJG and PAYX correlate at 0.50, moderate. The relationship has been stable: the 1-year correlation (0.56) sits close to the 3-year figure. Stretching to 5 years gives 0.54, with an annualized covariance of 265.3 %².
Among the 32 assets we track against AJG, PAYX ranks #14 by 3-year correlation. The trailing year gives PAYX the advantage: -11.9% versus -4.8%, a 7.1-point spread. The relationship is regime-dependent: the rolling one-year correlation swung between 0.05 and 0.60 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 PAYX: side by side
| AJG (Arthur J. Gallagher & Co.) | PAYX (Paychex) | |
|---|---|---|
| 1-year return | -11.9% | -4.8% |
| 5-year return | +91.1% | +29.0% |
| Volatility (ann.) | 25.0% | 21.3% |
| Beta vs S&P 500 | 0.36 | 0.47 |
| Max drawdown (3Y) | -44.4% | -45.0% |
| Market cap | $66.7B | $45.0B |
| P/E (trailing) | 43.1 | 25.5 |
| Dividend yield | 1.02% | 0.00% |
| Sector / category | Financials | Industrials |
Year-by-year returns
| Year | AJG | PAYX |
|---|---|---|
| 2022 | +12.4% | -13.2% |
| 2023 | +20.5% | +6.2% |
| 2024 | +27.3% | +21.3% |
| 2025 | -8.0% | -17.5% |
| 2026 | +1.2% | +16.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AJG and PAYX good diversifiers for each other?
Only partially. A correlation of 0.50 means AJG and PAYX 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 AJG and PAYX?
As of 2026-08-27, the correlation of weekly returns between AJG and PAYX is 0.50 over 3 years, 0.56 over 1 year and 0.54 over 5 years.
Is PAYX a good diversifier for AJG?
Only partially. A correlation of 0.50 means AJG and PAYX share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.50 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.
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Related comparisons
Hubs: AJG correlations · PAYX correlations
