ECPG vs PRAA: Correlation
How closely do Encore Capital Group Inc (ECPG) and PRA Group, Inc. (PRAA) trade together? Their weekly returns over three years give a correlation of 0.57, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ECPG and PRAA?
Over the past 3 years, ECPG and PRAA moved with a correlation of 0.57, which is moderate. Lately the two have moved closer together, with the 1-year correlation at 0.74 versus 0.57 over 3 years. Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 1250.0 %².
Few assets follow ECPG as closely as PRAA, which ranks #1 of 16 tracked partners. The last year tells two different stories: ECPG led by 131.4 percentage points, +144.3% for ECPG against +12.9% for PRAA. One caveat on sizing: PRAA 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.
ECPG vs PRAA: side by side
| ECPG (Encore Capital Group Inc) | PRAA (PRA Group, Inc.) | |
|---|---|---|
| 1-year return | +144.3% | +12.9% |
| 5-year return | +114.1% | -53.3% |
| Volatility (ann.) | 35.6% | 62.0% |
| Beta vs S&P 500 | 0.85 | 1.15 |
| Max drawdown (3Y) | -49.2% | -62.8% |
| Market cap | $2.2B | $0.7B |
| P/E (trailing) | 7.7 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ECPG | PRAA |
|---|---|---|
| 2022 | -22.8% | -32.7% |
| 2023 | +5.9% | -22.4% |
| 2024 | -5.9% | -20.3% |
| 2025 | +13.8% | -15.3% |
| 2026 | +87.6% | +9.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ECPG and PRAA good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ECPG and PRAA?
Using weekly returns as of 2026-08-27: 0.57 over 3 years, with 0.74 over the last year and 0.55 over 5 years.
Is PRAA a good diversifier for ECPG?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 mean?
On the −1 to +1 scale, 0.57 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/ecpg-vs-praa.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ecpg-vs-praa/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ECPG correlations · PRAA correlations
