NET vs NOW: Correlation
How closely do Cloudflare, Inc. (NET) and ServiceNow (NOW) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NET and NOW?
Over the past 3 years, NET and NOW moved with a correlation of 0.56, which is moderate. The relationship has been stable: the 1-year correlation (0.59) sits close to the 3-year figure. Over 5 years the correlation is 0.62, and the annualized covariance of weekly returns is 1293.3 %².
In NET's tracked universe of 15 assets, NOW sits right near the top at #3. Correlation aside, the last 12 months split them widely, with NET ahead by 72.3 points (+50.2% versus -22.1%).
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.
NET vs NOW: side by side
| NET (Cloudflare, Inc.) | NOW (ServiceNow) | |
|---|---|---|
| 1-year return | +50.2% | -22.1% |
| 5-year return | +149.7% | +7.9% |
| Volatility (ann.) | 53.7% | 43.2% |
| Beta vs S&P 500 | 1.68 | 1.38 |
| Max drawdown (3Y) | -45.0% | -64.5% |
| Market cap | $109.8B | $143.1B |
| P/E (trailing) | – | 78.7 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | Information Technology |
Year-by-year returns
| Year | NET | NOW |
|---|---|---|
| 2022 | -65.6% | -40.2% |
| 2023 | +84.2% | +82.0% |
| 2024 | +29.3% | +50.1% |
| 2025 | +83.1% | -27.7% |
| 2026 | +56.3% | -9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NET and NOW good diversifiers for each other?
To a limited degree. At 0.56 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between NET and NOW?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.59 over the last year and 0.62 over 5 years.
Is NOW a good diversifier for NET?
To a limited degree. At 0.56 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
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/net-vs-now.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/net-vs-now/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NET correlations · NOW correlations
