IBM vs NOW: Correlation
How closely do IBM (IBM) and ServiceNow (NOW) trade together? Their weekly returns over three years give a correlation of 0.41, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBM and NOW?
Over the past 3 years, IBM and NOW moved with a correlation of 0.41, which is moderate. The link has tightened recently: the 1-year correlation (0.53) runs above the 3-year figure (0.41). Over 5 years the correlation is 0.38, and the annualized covariance of weekly returns is 620.1 %².
Within IBM's tracked universe of 28 assets, NOW comes in at #14 by 3-year correlation. The last year tells two different stories: IBM led by 22.2 percentage points, +0.1% for IBM against -22.1% for NOW. On a rolling one-year basis the correlation drifted between 0.09 and 0.56, 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.
IBM vs NOW: side by side
| IBM (IBM) | NOW (ServiceNow) | |
|---|---|---|
| 1-year return | +0.1% | -22.1% |
| 5-year return | +117.6% | +7.9% |
| Volatility (ann.) | 34.7% | 43.2% |
| Beta vs S&P 500 | 0.78 | 1.38 |
| Max drawdown (3Y) | -37.5% | -64.5% |
| Market cap | $225.0B | $143.1B |
| P/E (trailing) | 20.4 | 78.7 |
| Dividend yield | 2.93% | 0.00% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | IBM | NOW |
|---|---|---|
| 2022 | +10.6% | -40.2% |
| 2023 | +21.8% | +82.0% |
| 2024 | +39.3% | +50.1% |
| 2025 | +38.2% | -27.7% |
| 2026 | -17.7% | -9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBM and NOW good diversifiers for each other?
Reasonably. At 0.41, IBM and NOW keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IBM and NOW?
As of 2026-08-27, the correlation of weekly returns between IBM and NOW is 0.41 over 3 years, 0.53 over 1 year and 0.38 over 5 years.
Is NOW a good diversifier for IBM?
Reasonably. At 0.41, IBM and NOW keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.41 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibm-vs-now.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ibm-vs-now/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IBM correlations · NOW correlations
