PCTY vs SPY: Correlation
Paylocity Holding Corporation (PCTY) and SPDR S&P 500 ETF Trust (SPY) show a weak relationship: their 3-year correlation of weekly returns is 0.25.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PCTY and SPY?
Across a 3-year window, the weekly returns of PCTY and SPY correlate at 0.25, weak. Lately the two have drifted apart, with the 1-year correlation at 0.10 versus 0.25 over 3 years. Stretching to 5 years gives 0.47, with an annualized covariance of 129.7 %².
Out of 13 assets tracked against PCTY, SPY lands near the bottom at #9. The last year tells two different stories: SPY led by 33.3 percentage points, -12.7% for PCTY against +20.6% for SPY. One caveat on sizing: PCTY is 2.4 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.
PCTY vs SPY: side by side
| PCTY (Paylocity Holding Corporation) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -12.7% | +20.6% |
| 5-year return | -41.2% | +82.4% |
| Volatility (ann.) | 35.4% | 14.5% |
| Beta vs S&P 500 | 0.62 | 1.00 |
| Max drawdown (3Y) | -56.3% | -18.8% |
| Market cap | $8.8B | – |
| P/E (trailing) | 30.9 | – |
| Dividend yield | 0.00% | 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 | PCTY | SPY |
|---|---|---|
| 2022 | -17.7% | -18.2% |
| 2023 | -15.1% | +26.2% |
| 2024 | +21.0% | +24.9% |
| 2025 | -23.5% | +17.7% |
| 2026 | +3.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PCTY and SPY good diversifiers for each other?
Reasonably. At 0.25, PCTY and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between PCTY and SPY?
Using weekly returns as of 2026-08-27: 0.25 over 3 years, with 0.10 over the last year and 0.47 over 5 years.
Is SPY a good diversifier for PCTY?
Reasonably. At 0.25, PCTY and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.25 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.
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Related comparisons
Hubs: PCTY correlations · SPY correlations
