PAYC vs PCTY: Correlation
Paycom Software, Inc. (PAYC) and Paylocity Holding Corporation (PCTY) show a strong relationship: their 3-year correlation of weekly returns is 0.73.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PAYC and PCTY?
Over the past 3 years, PAYC and PCTY moved with a correlation of 0.73, which is strong. The relationship has been stable: the 1-year correlation (0.74) sits close to the 3-year figure. Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 1213.5 %².
PCTY is one of the assets that tracks PAYC most closely: it ranks #1 out of the 17 assets we track against PAYC. Their recent paths diverged sharply: over the last 12 months PAYC outperformed by 17.7 percentage points (+5.0% for PAYC against -12.7% for PCTY).
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 PCTY: side by side
| PAYC (Paycom Software, Inc.) | PCTY (Paylocity Holding Corporation) | |
|---|---|---|
| 1-year return | +5.0% | -12.7% |
| 5-year return | -50.2% | -41.2% |
| Volatility (ann.) | 46.9% | 35.4% |
| Beta vs S&P 500 | 0.72 | 0.62 |
| Max drawdown (3Y) | -60.8% | -56.3% |
| Market cap | $10.7B | $8.8B |
| P/E (trailing) | 25.1 | 30.9 |
| Dividend yield | 0.65% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PAYC | PCTY |
|---|---|---|
| 2022 | -25.3% | -17.7% |
| 2023 | -33.1% | -15.1% |
| 2024 | -0.0% | +21.0% |
| 2025 | -21.7% | -23.5% |
| 2026 | +49.8% | +3.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PAYC and PCTY good diversifiers for each other?
Only partially. A correlation of 0.73 means PAYC and PCTY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between PAYC and PCTY?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.74 over the last year and 0.78 over 5 years.
Is PCTY a good diversifier for PAYC?
Only partially. A correlation of 0.73 means PAYC and PCTY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
A reading of 0.73 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/payc-vs-pcty.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/payc-vs-pcty/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PAYC correlations · PCTY correlations
