PAYC vs SPY: Correlation
Measured on weekly returns over the past three years, Paycom Software, Inc. (PAYC) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.22, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PAYC and SPY?
Across a 3-year window, the weekly returns of PAYC and SPY correlate at 0.22, weak. The relationship has been stable: the 1-year correlation (0.30) sits close to the 3-year figure. Stretching to 5 years gives 0.44, with an annualized covariance of 151.3 %².
By 3-year correlation, SPY places #9 of the 17 assets tracked against PAYC. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 15.6 percentage points (+5.0% for PAYC against +20.6% for SPY). Note the risk asymmetry: PAYC runs 3.2 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.
PAYC vs SPY: side by side
| PAYC (Paycom Software, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +5.0% | +20.6% |
| 5-year return | -50.2% | +82.4% |
| Volatility (ann.) | 46.9% | 14.5% |
| Beta vs S&P 500 | 0.72 | 1.00 |
| Max drawdown (3Y) | -60.8% | -18.8% |
| Market cap | $10.7B | – |
| P/E (trailing) | 25.1 | – |
| Dividend yield | 0.65% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | PAYC | SPY |
|---|---|---|
| 2022 | -25.3% | -18.2% |
| 2023 | -33.1% | +26.2% |
| 2024 | -0.0% | +24.9% |
| 2025 | -21.7% | +17.7% |
| 2026 | +49.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PAYC and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between PAYC and SPY?
As of 2026-08-27, the correlation of weekly returns between PAYC and SPY is 0.22 over 3 years, 0.30 over 1 year and 0.44 over 5 years.
Is SPY a good diversifier for PAYC?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.22 mean?
A reading of 0.22 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 · SPY correlations
