CTSH vs IBM: Correlation
Measured on weekly returns over the past three years, Cognizant (CTSH) and IBM (IBM) carry a correlation of 0.45, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CTSH and IBM?
Across a 3-year window, the weekly returns of CTSH and IBM correlate at 0.45, moderate. Little has changed lately, as the 1-year reading of 0.44 lands near the 3-year figure. Stretching to 5 years gives 0.43, with an annualized covariance of 506.5 %².
By 3-year correlation, IBM places #26 of the 44 assets tracked against CTSH. The trailing year gives IBM the advantage: -9.8% versus +0.1%, a 9.9-point spread. The rolling one-year correlation moved between 0.27 and 0.67 over the past three years, a moderate range.
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.
CTSH vs IBM: side by side
| CTSH (Cognizant) | IBM (IBM) | |
|---|---|---|
| 1-year return | -9.8% | +0.1% |
| 5-year return | -9.6% | +117.6% |
| Volatility (ann.) | 32.3% | 34.7% |
| Beta vs S&P 500 | 0.89 | 0.78 |
| Max drawdown (3Y) | -56.1% | -37.5% |
| Market cap | $28.7B | $225.0B |
| P/E (trailing) | 13.3 | 20.4 |
| Dividend yield | 2.09% | 2.93% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | CTSH | IBM |
|---|---|---|
| 2022 | -34.5% | +10.6% |
| 2023 | +34.4% | +21.8% |
| 2024 | +3.5% | +39.3% |
| 2025 | +9.7% | +38.2% |
| 2026 | -21.8% | -17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CTSH and IBM good diversifiers for each other?
Reasonably. At 0.45, CTSH and IBM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between CTSH and IBM?
As of 2026-08-27, the correlation of weekly returns between CTSH and IBM is 0.45 over 3 years, 0.44 over 1 year and 0.43 over 5 years.
Is IBM a good diversifier for CTSH?
Reasonably. At 0.45, CTSH and IBM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.45 mean?
A reading of 0.45 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
$ curl https://www.pairbook.io/api/v1/pairs/ctsh-vs-ibm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ctsh-vs-ibm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CTSH correlations · IBM correlations
