NOW vs SPY: Correlation
Measured on weekly returns over the past three years, ServiceNow (NOW) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.46, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NOW and SPY?
Across a 3-year window, the weekly returns of NOW and SPY correlate at 0.46, moderate. The past 12 months show a weaker link (0.26) than the 3-year average (0.46). Stretching to 5 years gives 0.58, with an annualized covariance of 288.2 %².
Within NOW's tracked universe of 54 assets, SPY comes in at #42 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SPY ahead by 42.7 points (-22.1% versus +20.6%). This link changes with the market regime, having swung between 0.20 and 0.75 on a rolling one-year basis. Note the risk asymmetry: NOW runs 3.0 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 SPY: side by side
| NOW (ServiceNow) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -22.1% | +20.6% |
| 5-year return | +7.9% | +82.4% |
| Volatility (ann.) | 43.2% | 14.5% |
| Beta vs S&P 500 | 1.38 | 1.00 |
| Max drawdown (3Y) | -64.5% | -18.8% |
| Market cap | $143.1B | – |
| P/E (trailing) | 78.7 | – |
| Dividend yield | 0.00% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Information Technology | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | NOW | SPY |
|---|---|---|
| 2022 | -40.2% | -18.2% |
| 2023 | +82.0% | +26.2% |
| 2024 | +50.1% | +24.9% |
| 2025 | -27.7% | +17.7% |
| 2026 | -9.6% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SPY holds NOW at a 0.2% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are NOW and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.46 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between NOW and SPY?
As of 2026-08-27, the correlation of weekly returns between NOW and SPY is 0.46 over 3 years, 0.26 over 1 year and 0.58 over 5 years.
Is SPY a good diversifier for NOW?
Yes, to a useful degree: a correlation of 0.46 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.46 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: NOW correlations · SPY correlations
