PANW vs ZS: Correlation
How closely do Palo Alto Networks (PANW) and Zscaler, Inc. (ZS) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PANW and ZS?
Over the past 3 years, PANW and ZS moved with a correlation of 0.61, which is strong. Recent behaviour matches the longer record: 0.65 over 1 year against 0.61 over 3. Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 1172.4 %².
In PANW's tracked universe of 30 assets, ZS sits right near the top at #3. Correlation aside, the last 12 months split them widely, with PANW ahead by 135.5 points (+104.1% versus -31.4%).
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.
PANW vs ZS: side by side
| PANW (Palo Alto Networks) | ZS (Zscaler, Inc.) | |
|---|---|---|
| 1-year return | +104.1% | -31.4% |
| 5-year return | +400.7% | -32.7% |
| Volatility (ann.) | 42.0% | 45.7% |
| Beta vs S&P 500 | 1.32 | 1.47 |
| Max drawdown (3Y) | -36.0% | -64.9% |
| Market cap | $312.0B | $30.3B |
| P/E (trailing) | 294.5 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Information Technology | US Listed |
Year-by-year returns
| Year | PANW | ZS |
|---|---|---|
| 2022 | -24.8% | -65.2% |
| 2023 | +111.3% | +98.0% |
| 2024 | +23.4% | -18.6% |
| 2025 | +1.2% | +24.7% |
| 2026 | +107.8% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PANW and ZS good diversifiers for each other?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between PANW and ZS?
As of 2026-08-27, the correlation of weekly returns between PANW and ZS is 0.61 over 3 years, 0.65 over 1 year and 0.59 over 5 years.
Is ZS a good diversifier for PANW?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.61 mean?
A reading of 0.61 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/panw-vs-zs.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/panw-vs-zs/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PANW correlations · ZS correlations
