AON vs TER: Correlation
How closely do Aon plc (AON) and Teradyne (TER) 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 AON and TER?
Across a 3-year window, the weekly returns of AON and TER correlate at -0.20, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.27 lands near the 3-year figure. Stretching to 5 years gives 0.01, with an annualized covariance of -232.7 %².
Within AON's tracked universe of 32 assets, TER comes in at #27 by 3-year correlation. The last year tells two different stories: TER led by 223.4 percentage points, -4.6% for AON 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 -0.38 to 0.37. Risk is not evenly split, since TER carries 2.4 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.
AON vs TER: side by side
| AON (Aon plc) | TER (Teradyne) | |
|---|---|---|
| 1-year return | -4.6% | +218.8% |
| 5-year return | +27.0% | +207.9% |
| Volatility (ann.) | 21.7% | 52.5% |
| Beta vs S&P 500 | 0.34 | 1.70 |
| Max drawdown (3Y) | -24.2% | -58.2% |
| Market cap | $74.2B | $58.2B |
| P/E (trailing) | 19.5 | 50.0 |
| Dividend yield | 0.86% | 0.14% |
| Sector / category | Financials | Information Technology |
Year-by-year returns
| Year | AON | TER |
|---|---|---|
| 2022 | +0.6% | -46.3% |
| 2023 | -2.3% | +24.8% |
| 2024 | +24.5% | +16.5% |
| 2025 | -1.2% | +54.4% |
| 2026 | -0.5% | +92.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AON and TER good diversifiers for each other?
Yes. With a correlation of -0.20, AON and TER have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AON and TER?
The AON/TER correlation stands at -0.20 on a 3-year window (1 year: -0.27, 5 years: 0.01), computed from weekly returns as of 2026-08-27.
Is TER a good diversifier for AON?
Yes. With a correlation of -0.20, AON and TER 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/aon-vs-ter.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/aon-vs-ter/)
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Related comparisons
Hubs: AON correlations · TER correlations
