PAYC vs PAYX: Correlation
How closely do Paycom Software, Inc. (PAYC) and Paychex (PAYX) trade together? Their weekly returns over three years give a correlation of 0.53, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PAYC and PAYX?
Across a 3-year window, the weekly returns of PAYC and PAYX correlate at 0.53, moderate. The past 12 months show a tighter link (0.68) than the 3-year average (0.53). Stretching to 5 years gives 0.58, with an annualized covariance of 528.1 %².
Few assets follow PAYC as closely as PAYX, which ranks #3 of 17 tracked partners. The trailing year gives PAYC the advantage: +5.0% versus -4.8%, a 9.8-point spread. Risk is not evenly split, since PAYC carries 2.2 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.
PAYC vs PAYX: side by side
| PAYC (Paycom Software, Inc.) | PAYX (Paychex) | |
|---|---|---|
| 1-year return | +5.0% | -4.8% |
| 5-year return | -50.2% | +29.0% |
| Volatility (ann.) | 46.9% | 21.3% |
| Beta vs S&P 500 | 0.72 | 0.47 |
| Max drawdown (3Y) | -60.8% | -45.0% |
| Market cap | $10.7B | $45.0B |
| P/E (trailing) | 25.1 | 25.5 |
| Dividend yield | 0.65% | 0.00% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | PAYC | PAYX |
|---|---|---|
| 2022 | -25.3% | -13.2% |
| 2023 | -33.1% | +6.2% |
| 2024 | -0.0% | +21.3% |
| 2025 | -21.7% | -17.5% |
| 2026 | +49.8% | +16.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PAYC 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 PAYC and PAYX?
Using weekly returns as of 2026-08-27: 0.53 over 3 years, with 0.68 over the last year and 0.58 over 5 years.
Is PAYX a good diversifier for PAYC?
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?
A reading of 0.53 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: PAYC correlations · PAYX correlations
