IT vs NOW: Correlation
Measured on weekly returns over the past three years, Gartner (IT) and ServiceNow (NOW) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IT and NOW?
On 3 years of weekly data the IT/NOW correlation comes out at 0.56, moderate. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. The 5-year figure is 0.59, and annualized covariance runs at 986.3 %².
By 3-year correlation, NOW places #7 of the 36 assets tracked against IT. Their 12-month results are close: -20.2% for IT against -22.1% for NOW. On a rolling one-year basis the correlation drifted between 0.38 and 0.72, 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.
IT vs NOW: side by side
| IT (Gartner) | NOW (ServiceNow) | |
|---|---|---|
| 1-year return | -20.2% | -22.1% |
| 5-year return | -36.0% | +7.9% |
| Volatility (ann.) | 40.6% | 43.2% |
| Beta vs S&P 500 | 0.92 | 1.38 |
| Max drawdown (3Y) | -77.2% | -64.5% |
| Market cap | $12.4B | $143.1B |
| P/E (trailing) | 17.4 | 78.7 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | IT | NOW |
|---|---|---|
| 2022 | +0.5% | -40.2% |
| 2023 | +34.2% | +82.0% |
| 2024 | +7.4% | +50.1% |
| 2025 | -47.9% | -27.7% |
| 2026 | -22.1% | -9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IT and NOW good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IT and NOW?
The IT/NOW correlation stands at 0.56 on a 3-year window (1 year: 0.60, 5 years: 0.59), computed from weekly returns as of 2026-08-27.
Is NOW a good diversifier for IT?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 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/it-vs-now.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/it-vs-now/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IT correlations · NOW correlations
