PAYX vs WDC: Correlation
How closely do Paychex (PAYX) and Western Digital (WDC) trade together? Their weekly returns over three years give a correlation of -0.18, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PAYX and WDC?
Across a 3-year window, the weekly returns of PAYX and WDC correlate at -0.18, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.46) runs below the 3-year figure (-0.18). Stretching to 5 years gives 0.03, with an annualized covariance of -227.9 %².
Among the 37 assets we track against PAYX, WDC ranks #30 by 3-year correlation. Correlation aside, the last 12 months split them widely, with WDC ahead by 479.1 points (-4.8% versus +474.3%). This link changes with the market regime, having swung between -0.47 and 0.42 on a rolling one-year basis. One caveat on sizing: WDC is 2.7 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.
PAYX vs WDC: side by side
| PAYX (Paychex) | WDC (Western Digital) | |
|---|---|---|
| 1-year return | -4.8% | +474.3% |
| 5-year return | +29.0% | +889.2% |
| Volatility (ann.) | 21.3% | 58.0% |
| Beta vs S&P 500 | 0.47 | 2.15 |
| Max drawdown (3Y) | -45.0% | -49.6% |
| Market cap | $45.0B | $166.6B |
| P/E (trailing) | 25.5 | 17.4 |
| Dividend yield | 0.00% | 0.11% |
| Sector / category | Industrials | Information Technology |
Year-by-year returns
| Year | PAYX | WDC |
|---|---|---|
| 2022 | -13.2% | -51.6% |
| 2023 | +6.2% | +66.0% |
| 2024 | +21.3% | +13.9% |
| 2025 | -17.5% | +283.7% |
| 2026 | +16.6% | +168.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PAYX and WDC good diversifiers for each other?
Yes. With a correlation of -0.18, PAYX and WDC have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between PAYX and WDC?
The PAYX/WDC correlation stands at -0.18 on a 3-year window (1 year: -0.46, 5 years: 0.03), computed from weekly returns as of 2026-08-27.
Is WDC a good diversifier for PAYX?
Yes. With a correlation of -0.18, PAYX and WDC have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.18 mean?
A reading of -0.18 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
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Related comparisons
Hubs: PAYX correlations · WDC correlations
