ADP vs PAYX: Correlation
How closely do Automatic Data Processing (ADP) and Paychex (PAYX) trade together? Their weekly returns over three years give a correlation of 0.84, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADP and PAYX?
On 3 years of weekly data the ADP/PAYX correlation comes out at 0.84, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.87 lands near the 3-year figure. The 5-year figure is 0.84, and annualized covariance runs at 387.1 %².
PAYX is one of the assets that tracks ADP most closely: it ranks #1 out of the 43 assets we track against ADP. Their 12-month results are close: -3.5% for ADP against -4.8% for PAYX. The link looks structural: the rolling one-year correlation barely moved, holding between 0.74 and 0.87.
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.
ADP vs PAYX: side by side
| ADP (Automatic Data Processing) | PAYX (Paychex) | |
|---|---|---|
| 1-year return | -3.5% | -4.8% |
| 5-year return | +52.0% | +29.0% |
| Volatility (ann.) | 21.7% | 21.3% |
| Beta vs S&P 500 | 0.53 | 0.47 |
| Max drawdown (3Y) | -40.8% | -45.0% |
| Market cap | $113.1B | $45.0B |
| P/E (trailing) | 26.0 | 25.5 |
| Dividend yield | 2.36% | 0.00% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | ADP | PAYX |
|---|---|---|
| 2022 | -1.3% | -13.2% |
| 2023 | -0.2% | +6.2% |
| 2024 | +28.4% | +21.3% |
| 2025 | -10.2% | -17.5% |
| 2026 | +12.4% | +16.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ADP and PAYX good diversifiers for each other?
No. With a correlation of 0.84, ADP and PAYX move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ADP and PAYX?
As of 2026-08-27, the correlation of weekly returns between ADP and PAYX is 0.84 over 3 years, 0.87 over 1 year and 0.84 over 5 years.
Is PAYX a good diversifier for ADP?
No. With a correlation of 0.84, ADP and PAYX move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.84 mean?
A reading of 0.84 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: ADP correlations · PAYX correlations
