ADP vs PCTY: Correlation
Measured on weekly returns over the past three years, Automatic Data Processing (ADP) and Paylocity Holding Corporation (PCTY) carry a correlation of 0.67, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADP and PCTY?
Across a 3-year window, the weekly returns of ADP and PCTY correlate at 0.67, strong. The link has tightened recently: the 1-year correlation (0.83) runs above the 3-year figure (0.67). Stretching to 5 years gives 0.62, with an annualized covariance of 512.8 %².
Few assets follow ADP as closely as PCTY, which ranks #2 of 43 tracked partners. The trailing year gives ADP the advantage: -3.5% versus -12.7%, a 9.2-point spread. Risk is not evenly split, since PCTY carries 1.6 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.
ADP vs PCTY: side by side
| ADP (Automatic Data Processing) | PCTY (Paylocity Holding Corporation) | |
|---|---|---|
| 1-year return | -3.5% | -12.7% |
| 5-year return | +52.0% | -41.2% |
| Volatility (ann.) | 21.7% | 35.4% |
| Beta vs S&P 500 | 0.53 | 0.62 |
| Max drawdown (3Y) | -40.8% | -56.3% |
| Market cap | $113.1B | $8.8B |
| P/E (trailing) | 26.0 | 30.9 |
| Dividend yield | 2.36% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | ADP | PCTY |
|---|---|---|
| 2022 | -1.3% | -17.7% |
| 2023 | -0.2% | -15.1% |
| 2024 | +28.4% | +21.0% |
| 2025 | -10.2% | -23.5% |
| 2026 | +12.4% | +3.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ADP and PCTY good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ADP and PCTY?
The ADP/PCTY correlation stands at 0.67 on a 3-year window (1 year: 0.83, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is PCTY a good diversifier for ADP?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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/adp-vs-pcty.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/adp-vs-pcty/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ADP correlations · PCTY correlations
