DDOG vs PANW: Correlation
How closely do Datadog (DDOG) and Palo Alto Networks (PANW) trade together? Their weekly returns over three years give a correlation of 0.53, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DDOG and PANW?
Across a 3-year window, the weekly returns of DDOG and PANW correlate at 0.53, moderate. The relationship has been stable: the 1-year correlation (0.57) sits close to the 3-year figure. Stretching to 5 years gives 0.52, with an annualized covariance of 1218.6 %².
Within DDOG's tracked universe of 30 assets, PANW comes in at #5 by 3-year correlation. The last year tells two different stories: PANW led by 19.7 percentage points, +84.4% for DDOG against +104.1% for PANW. The rolling one-year correlation moved between 0.27 and 0.64 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.
DDOG vs PANW: side by side
| DDOG (Datadog) | PANW (Palo Alto Networks) | |
|---|---|---|
| 1-year return | +84.4% | +104.1% |
| 5-year return | +77.8% | +400.7% |
| Volatility (ann.) | 54.6% | 42.0% |
| Beta vs S&P 500 | 1.37 | 1.32 |
| Max drawdown (3Y) | -48.6% | -36.0% |
| Market cap | $87.2B | $312.0B |
| P/E (trailing) | 458.4 | 294.5 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | DDOG | PANW |
|---|---|---|
| 2022 | -58.7% | -24.8% |
| 2023 | +65.1% | +111.3% |
| 2024 | +17.7% | +23.4% |
| 2025 | -4.8% | +1.2% |
| 2026 | +78.6% | +107.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DDOG and PANW good diversifiers for each other?
Only partially. A correlation of 0.53 means DDOG and PANW share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between DDOG and PANW?
As of 2026-08-27, the correlation of weekly returns between DDOG and PANW is 0.53 over 3 years, 0.57 over 1 year and 0.52 over 5 years.
Is PANW a good diversifier for DDOG?
Only partially. A correlation of 0.53 means DDOG and PANW share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.53 mean?
A reading of 0.53 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/ddog-vs-panw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ddog-vs-panw/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DDOG correlations · PANW correlations
