AJG vs TER: Correlation
How closely do Arthur J. Gallagher & Co. (AJG) and Teradyne (TER) trade together? Their weekly returns over three years give a correlation of -0.25, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AJG and TER?
Across a 3-year window, the weekly returns of AJG and TER correlate at -0.25, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.38) runs below the 3-year figure (-0.25). Stretching to 5 years gives -0.05, with an annualized covariance of -330.3 %².
TER is close to the least connected end of AJG's tracked universe, ranking #29 of 32. Their recent paths diverged sharply: over the last 12 months TER outperformed by 230.7 percentage points (-11.9% for AJG against +218.8% for TER). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.41 to 0.25. Risk is not evenly split, since TER carries 2.1 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.
AJG vs TER: side by side
| AJG (Arthur J. Gallagher & Co.) | TER (Teradyne) | |
|---|---|---|
| 1-year return | -11.9% | +218.8% |
| 5-year return | +91.1% | +207.9% |
| Volatility (ann.) | 25.0% | 52.5% |
| Beta vs S&P 500 | 0.36 | 1.70 |
| Max drawdown (3Y) | -44.4% | -58.2% |
| Market cap | $66.7B | $58.2B |
| P/E (trailing) | 43.1 | 50.0 |
| Dividend yield | 1.02% | 0.14% |
| Sector / category | Financials | Information Technology |
Year-by-year returns
| Year | AJG | TER |
|---|---|---|
| 2022 | +12.4% | -46.3% |
| 2023 | +20.5% | +24.8% |
| 2024 | +27.3% | +16.5% |
| 2025 | -8.0% | +54.4% |
| 2026 | +1.2% | +92.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AJG and TER good diversifiers for each other?
Yes. With a correlation of -0.25, AJG and TER have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AJG and TER?
Using weekly returns as of 2026-08-27: -0.25 over 3 years, with -0.38 over the last year and -0.05 over 5 years.
Is TER a good diversifier for AJG?
Yes. With a correlation of -0.25, AJG and TER have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.25 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 · TER correlations
