CTSH vs PAYX: Correlation
Measured on weekly returns over the past three years, Cognizant (CTSH) and Paychex (PAYX) carry a correlation of 0.53, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CTSH and PAYX?
On 3 years of weekly data the CTSH/PAYX correlation comes out at 0.53, moderate. The relationship has been stable: the 1-year correlation (0.51) sits close to the 3-year figure. The 5-year figure is 0.55, and annualized covariance runs at 364.3 %².
By 3-year correlation, PAYX places #20 of the 44 assets tracked against CTSH. On 12-month performance PAYX holds a 5.0-point edge, -9.8% against -4.8%. Across three years, the rolling one-year figure varied moderately, from 0.30 to 0.65. Note the risk asymmetry: CTSH runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
CTSH vs PAYX: side by side
| CTSH (Cognizant) | PAYX (Paychex) | |
|---|---|---|
| 1-year return | -9.8% | -4.8% |
| 5-year return | -9.6% | +29.0% |
| Volatility (ann.) | 32.3% | 21.3% |
| Beta vs S&P 500 | 0.89 | 0.47 |
| Max drawdown (3Y) | -56.1% | -45.0% |
| Market cap | $28.7B | $45.0B |
| P/E (trailing) | 13.3 | 25.5 |
| Dividend yield | 2.09% | 0.00% |
| Sector / category | Information Technology | Industrials |
Year-by-year returns
| Year | CTSH | PAYX |
|---|---|---|
| 2022 | -34.5% | -13.2% |
| 2023 | +34.4% | +6.2% |
| 2024 | +3.5% | +21.3% |
| 2025 | +9.7% | -17.5% |
| 2026 | -21.8% | +16.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CTSH and PAYX good diversifiers for each other?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CTSH and PAYX?
Using weekly returns as of 2026-08-27: 0.53 over 3 years, with 0.51 over the last year and 0.55 over 5 years.
Is PAYX a good diversifier for CTSH?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.53 mean?
On the −1 to +1 scale, 0.53 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
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Related comparisons
Hubs: CTSH correlations · PAYX correlations
