NOW vs PEP: Correlation
Measured on weekly returns over the past three years, ServiceNow (NOW) and PepsiCo (PEP) carry a correlation of -0.21, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NOW and PEP?
On 3 years of weekly data the NOW/PEP correlation comes out at -0.21, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.34) runs below the 3-year figure (-0.21). The 5-year figure is -0.05, and annualized covariance runs at -172.9 %².
Among the 54 assets we track against NOW, PEP ranks #47 by 3-year correlation. Correlation aside, the last 12 months split them widely, with PEP ahead by 20.5 points (-22.1% versus -1.6%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.42 to 0.22. Note the risk asymmetry: NOW runs 2.3 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 PEP: side by side
| NOW (ServiceNow) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | -22.1% | -1.6% |
| 5-year return | +7.9% | +4.9% |
| Volatility (ann.) | 43.2% | 19.1% |
| Beta vs S&P 500 | 1.38 | 0.13 |
| Max drawdown (3Y) | -64.5% | -27.5% |
| Market cap | $143.1B | $190.9B |
| P/E (trailing) | 78.7 | 18.6 |
| Dividend yield | 0.00% | 4.04% |
| Sector / category | Information Technology | Consumer Staples |
Year-by-year returns
| Year | NOW | PEP |
|---|---|---|
| 2022 | -40.2% | +6.8% |
| 2023 | +82.0% | -3.3% |
| 2024 | +50.1% | -7.6% |
| 2025 | -27.7% | -1.8% |
| 2026 | -9.6% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NOW and PEP good diversifiers for each other?
Yes: at -0.21, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between NOW and PEP?
As of 2026-08-27, the correlation of weekly returns between NOW and PEP is -0.21 over 3 years, -0.34 over 1 year and -0.05 over 5 years.
Is PEP a good diversifier for NOW?
Yes: at -0.21, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.21 mean?
A reading of -0.21 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-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/now-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NOW correlations · PEP correlations
