AJG vs TWFG: Correlation
How closely do Arthur J. Gallagher & Co. (AJG) and TWFG, Inc. (TWFG) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AJG and TWFG?
Across a 3-year window, the weekly returns of AJG and TWFG correlate at 0.54, moderate. The past 12 months show a tighter link (0.67) than the 3-year average (0.54). Stretching to 5 years gives n/a, with an annualized covariance of 642.1 %².
Within AJG's tracked universe of 32 assets, TWFG comes in at #10 by 3-year correlation. The last year tells two different stories: TWFG led by 16.5 percentage points, -11.9% for AJG against +4.6% for TWFG. One caveat on sizing: TWFG is 1.7 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.
AJG vs TWFG: side by side
| AJG (Arthur J. Gallagher & Co.) | TWFG (TWFG, Inc.) | |
|---|---|---|
| 1-year return | -11.9% | +4.6% |
| 5-year return | +91.1% | n/a |
| Volatility (ann.) | 25.0% | 43.1% |
| Beta vs S&P 500 | 0.36 | 0.36 |
| Max drawdown (3Y) | -44.4% | -52.7% |
| Market cap | $66.7B | $0.4B |
| P/E (trailing) | 43.1 | 52.2 |
| Dividend yield | 1.02% | 0.00% |
| Sector / category | Financials | US Listed |
Year-by-year returns
| Year | AJG | TWFG |
|---|---|---|
| 2022 | +12.4% | – |
| 2023 | +20.5% | – |
| 2024 | +27.3% | – |
| 2025 | -8.0% | -6.6% |
| 2026 | +1.2% | +1.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AJG and TWFG good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AJG and TWFG?
As of 2026-08-27, the correlation of weekly returns between AJG and TWFG is 0.54 over 3 years, 0.67 over 1 year and n/a over 5 years.
Is TWFG a good diversifier for AJG?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 mean?
On the −1 to +1 scale, 0.54 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-twfg.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ajg-vs-twfg/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AJG correlations · TWFG correlations
