PAYX vs PCTY: Correlation
Measured on weekly returns over the past three years, Paychex (PAYX) and Paylocity Holding Corporation (PCTY) carry a correlation of 0.61, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PAYX and PCTY?
Across a 3-year window, the weekly returns of PAYX and PCTY correlate at 0.61, strong. The link has tightened recently: the 1-year correlation (0.79) runs above the 3-year figure (0.61). Stretching to 5 years gives 0.62, with an annualized covariance of 460.4 %².
Within PAYX's tracked universe of 37 assets, PCTY comes in at #4 by 3-year correlation. Over the last 12 months PAYX came out ahead by 7.9 percentage points (-4.8% against -12.7%). Note the risk asymmetry: PCTY runs 1.7 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.
PAYX vs PCTY: side by side
| PAYX (Paychex) | PCTY (Paylocity Holding Corporation) | |
|---|---|---|
| 1-year return | -4.8% | -12.7% |
| 5-year return | +29.0% | -41.2% |
| Volatility (ann.) | 21.3% | 35.4% |
| Beta vs S&P 500 | 0.47 | 0.62 |
| Max drawdown (3Y) | -45.0% | -56.3% |
| Market cap | $45.0B | $8.8B |
| P/E (trailing) | 25.5 | 30.9 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | PAYX | PCTY |
|---|---|---|
| 2022 | -13.2% | -17.7% |
| 2023 | +6.2% | -15.1% |
| 2024 | +21.3% | +21.0% |
| 2025 | -17.5% | -23.5% |
| 2026 | +16.6% | +3.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PAYX and PCTY good diversifiers for each other?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between PAYX and PCTY?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.79 over the last year and 0.62 over 5 years.
Is PCTY a good diversifier for PAYX?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.61 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/payx-vs-pcty.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/payx-vs-pcty/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PAYX correlations · PCTY correlations
