CRM vs NOW: Correlation
How closely do Salesforce (CRM) and ServiceNow (NOW) trade together? Their weekly returns over three years give a correlation of 0.74, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CRM and NOW?
On 3 years of weekly data the CRM/NOW correlation comes out at 0.74, strong. Recent behaviour matches the longer record: 0.75 over 1 year against 0.74 over 3. The 5-year figure is 0.73, and annualized covariance runs at 1195.1 %².
NOW is one of the assets that tracks CRM most closely: it ranks #2 out of the 68 assets we track against CRM. The last year tells two different stories: CRM led by 23.7 percentage points, +1.6% for CRM against -22.1% for NOW. On a rolling one-year basis the correlation drifted between 0.52 and 0.81, a moderate band.
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.
CRM vs NOW: side by side
| CRM (Salesforce) | NOW (ServiceNow) | |
|---|---|---|
| 1-year return | +1.6% | -22.1% |
| 5-year return | -3.2% | +7.9% |
| Volatility (ann.) | 37.6% | 43.2% |
| Beta vs S&P 500 | 1.21 | 1.38 |
| Max drawdown (3Y) | -58.7% | -64.5% |
| Market cap | $207.4B | $143.1B |
| P/E (trailing) | 18.8 | 78.7 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | CRM | NOW |
|---|---|---|
| 2022 | -47.8% | -40.2% |
| 2023 | +98.5% | +82.0% |
| 2024 | +27.8% | +50.1% |
| 2025 | -20.2% | -27.7% |
| 2026 | -4.4% | -9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CRM and NOW good diversifiers for each other?
To a limited degree. At 0.74 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 CRM and NOW?
As of 2026-08-27, the correlation of weekly returns between CRM and NOW is 0.74 over 3 years, 0.75 over 1 year and 0.73 over 5 years.
Is NOW a good diversifier for CRM?
To a limited degree. At 0.74 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 0.74 mean?
On the −1 to +1 scale, 0.74 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/crm-vs-now.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/crm-vs-now/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CRM correlations · NOW correlations
