NOW vs PANW: Correlation
ServiceNow (NOW) and Palo Alto Networks (PANW) show a moderate relationship: their 3-year correlation of weekly returns is 0.53.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NOW and PANW?
On 3 years of weekly data the NOW/PANW correlation comes out at 0.53, moderate. Little has changed lately, as the 1-year reading of 0.53 lands near the 3-year figure. The 5-year figure is 0.56, and annualized covariance runs at 960.2 %².
Among the 54 assets we track against NOW, PANW ranks #28 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months PANW outperformed by 126.2 percentage points (-22.1% for NOW against +104.1% for PANW). On a rolling one-year basis the correlation drifted between 0.34 and 0.71, 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.
NOW vs PANW: side by side
| NOW (ServiceNow) | PANW (Palo Alto Networks) | |
|---|---|---|
| 1-year return | -22.1% | +104.1% |
| 5-year return | +7.9% | +400.7% |
| Volatility (ann.) | 43.2% | 42.0% |
| Beta vs S&P 500 | 1.38 | 1.32 |
| Max drawdown (3Y) | -64.5% | -36.0% |
| Market cap | $143.1B | $312.0B |
| P/E (trailing) | 78.7 | 294.5 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | NOW | PANW |
|---|---|---|
| 2022 | -40.2% | -24.8% |
| 2023 | +82.0% | +111.3% |
| 2024 | +50.1% | +23.4% |
| 2025 | -27.7% | +1.2% |
| 2026 | -9.6% | +107.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NOW and PANW good diversifiers for each other?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NOW and PANW?
Using weekly returns as of 2026-08-27: 0.53 over 3 years, with 0.53 over the last year and 0.56 over 5 years.
Is PANW a good diversifier for NOW?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
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/now-vs-panw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/now-vs-panw/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: NOW correlations · PANW correlations
