MSFT vs NOW: Correlation
Microsoft (MSFT) and ServiceNow (NOW) show a strong relationship: their 3-year correlation of weekly returns is 0.68.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSFT and NOW?
On 3 years of weekly data the MSFT/NOW correlation comes out at 0.68, strong. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. The 5-year figure is 0.69, and annualized covariance runs at 811.0 %².
Among the 39 assets we track against MSFT, NOW ranks #4 by 3-year correlation. The last year tells two different stories: MSFT led by 22.6 percentage points, +0.5% for MSFT against -22.1% for NOW. On a rolling one-year basis the correlation drifted between 0.58 and 0.87, a moderate band. Risk is not evenly split, since NOW carries 1.6 times the volatility of the other side.
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.
MSFT vs NOW: side by side
| MSFT (Microsoft) | NOW (ServiceNow) | |
|---|---|---|
| 1-year return | +0.5% | -22.1% |
| 5-year return | +73.3% | +7.9% |
| Volatility (ann.) | 27.5% | 43.2% |
| Beta vs S&P 500 | 1.12 | 1.38 |
| Max drawdown (3Y) | -34.5% | -64.5% |
| Market cap | $3,750.3B | $143.1B |
| P/E (trailing) | 28.1 | 78.7 |
| Dividend yield | 0.73% | 0.00% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | MSFT | NOW |
|---|---|---|
| 2022 | -28.0% | -40.2% |
| 2023 | +58.2% | +82.0% |
| 2024 | +12.9% | +50.1% |
| 2025 | +15.6% | -27.7% |
| 2026 | +5.1% | -9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSFT and NOW good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MSFT and NOW?
Using weekly returns as of 2026-08-27: 0.68 over 3 years, with 0.71 over the last year and 0.69 over 5 years.
Is NOW a good diversifier for MSFT?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.68 mean?
On the −1 to +1 scale, 0.68 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/msft-vs-now.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/msft-vs-now/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MSFT correlations · NOW correlations
