NOW vs. ^GSPC

Last updated Jun 16, 2026

NOW (ServiceNow, Inc) is a stock, while ^GSPC (S&P 500 Index) is an index. Over the past 10 years, NOW returned 21.87%/yr vs 13.81%/yr for ^GSPC. A 0.54 correlation means they provide meaningful diversification when combined.

Performance

NOW vs. ^GSPC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ServiceNow, Inc (NOW) and S&P 500 Index (^GSPC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NOW achieves a -32.01% return, which is significantly lower than ^GSPC's 10.35% return. Over the past 10 years, NOW has outperformed ^GSPC with an annualized return of 21.87%, while ^GSPC has yielded a comparatively lower 13.81% annualized return.

NOW

• 1D: 1.96%
• 1M: 9.55%
• YTD: -32.01%
• 6M: -31.95%
• 1Y: -47.33%
• 3Y*: -2.71%
• 5Y*: 0.41%
• 10Y*: 21.87%

^GSPC

• 1D: 1.65%
• 1M: 1.97%
• YTD: 10.35%
• 6M: 10.82%
• 1Y: 26.39%
• 3Y*: 19.66%
• 5Y*: 12.33%
• 10Y*: 13.81%

*Multi-year figures are annualized to reflect compound growth (CAGR)

NOW vs. ^GSPC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NOW ServiceNow, Inc	-32.01%	-27.75%	50.05%	81.96%	-40.18%	17.93%	94.97%	58.56%	36.55%	75.40%
^GSPC S&P 500 Index	10.35%	16.39%	23.31%	24.23%	-19.44%	26.89%	16.26%	28.88%	-6.24%	19.42%

Correlation

The correlation between NOW and ^GSPC is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Jun 29, 2012	0.54

Over the past year, the correlation between NOW and ^GSPC has dropped to 0.23 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.

Return for Risk

NOW vs. ^GSPC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NOW

NOW Risk / Return Rank: 9
NOW Sharpe Ratio Rank: 6
NOW Sortino Ratio Rank: 8
NOW Omega Ratio Rank: 8
NOW Calmar Ratio Rank: 12
NOW Martin Ratio Rank: 9

^GSPC

^GSPC Risk / Return Rank: 83
^GSPC Sharpe Ratio Rank: 81
^GSPC Sortino Ratio Rank: 84
^GSPC Omega Ratio Rank: 86
^GSPC Calmar Ratio Rank: 76
^GSPC Martin Ratio Rank: 86

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NOW vs. ^GSPC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ServiceNow, Inc (NOW) and S&P 500 Index (^GSPC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	NOW	^GSPC	Difference
Sharpe ratio: Return per unit of total volatility	-0.95	2.14	-3.08
Sortino ratio: Return per unit of downside risk	-1.35	2.89	-4.23
Omega ratio: Gain probability vs. loss probability	0.83	1.39	-0.56
Calmar ratio: Return relative to maximum drawdown	-0.79	2.91	-3.70
Martin ratio: Return relative to average drawdown	-1.39	13.08	-14.47

NOW vs. ^GSPC - Sharpe Ratio Comparison

The current NOW Sharpe Ratio is -0.95, which is lower than the ^GSPC Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of NOW and ^GSPC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

NOW vs. ^GSPC - Drawdown Comparison

The maximum NOW drawdown since its inception was -64.54%, which is greater than ^GSPC's maximum drawdown of -56.78%. Use the drawdown chart below to compare losses from any high point for NOW and ^GSPC.

Drawdown Indicators

	NOW	^GSPC	Difference
Max Drawdown Largest peak-to-trough decline	-64.54%	-56.78%	-7.76%
Max Drawdown (1Y) Largest decline over 1 year	-60.28%	-9.10%	-51.18%
Max Drawdown (3Y) Largest decline over 3 years	-64.54%	-18.90%	-45.64%
Max Drawdown (5Y) Largest decline over 5 years	-64.54%	-25.43%	-39.11%
Max Drawdown (10Y) Largest decline over 10 years	-64.54%	-33.92%	-30.62%
Current Drawdown Current decline from peak	-55.51%	-0.73%	-54.78%
Average Drawdown Average peak-to-trough decline	-13.80%	-10.72%	-3.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	34.16%	2.02%	+32.14%

Volatility

NOW vs. ^GSPC - Volatility Comparison

ServiceNow, Inc (NOW) has a higher volatility of 25.39% compared to S&P 500 Index (^GSPC) at 4.67%. This indicates that NOW's price experiences larger fluctuations and is considered to be riskier than ^GSPC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NOW	^GSPC	Difference
Volatility (1M) Calculated over the trailing 1-month period	25.39%	4.67%	+20.72%
Volatility (6M) Calculated over the trailing 6-month period	47.03%	9.83%	+37.20%
Volatility (1Y) Calculated over the trailing 1-year period	50.24%	12.44%	+37.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.45%	16.99%	+26.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.87%	18.11%	+22.76%

Frequently Asked Questions

Can I hold both NOW and ^GSPC in my portfolio?

NOW and ^GSPC have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NOW or ^GSPC?

NOW has higher volatility (25.39%) compared to ^GSPC (4.67%). In terms of maximum drawdown, NOW dropped -64.54% vs ^GSPC's -56.78%.

Which has better risk-adjusted returns?

^GSPC currently has the higher Sharpe Ratio (2.14 vs -0.95), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.