ANET vs CDNS: Correlation
How closely do Arista Networks (ANET) and Cadence Design Systems (CDNS) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ANET and CDNS?
Over the past 3 years, ANET and CDNS moved with a correlation of 0.56, which is moderate. The past 12 months show a weaker link (0.34) than the 3-year average (0.56). Over 5 years the correlation is 0.52, and the annualized covariance of weekly returns is 993.1 %².
Among the 35 assets we track against ANET, CDNS ranks #19 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months ANET outperformed by 50.7 percentage points (+50.9% for ANET against +0.2% for CDNS). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.24 to 0.77.
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.
ANET vs CDNS: side by side
| ANET (Arista Networks) | CDNS (Cadence Design Systems) | |
|---|---|---|
| 1-year return | +50.9% | +0.2% |
| 5-year return | +764.7% | +112.1% |
| Volatility (ann.) | 49.3% | 35.8% |
| Beta vs S&P 500 | 2.20 | 1.45 |
| Max drawdown (3Y) | -50.4% | -29.1% |
| Market cap | $253.6B | $95.7B |
| P/E (trailing) | 64.0 | 66.7 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | ANET | CDNS |
|---|---|---|
| 2022 | -15.6% | -13.8% |
| 2023 | +94.1% | +69.6% |
| 2024 | +87.7% | +10.3% |
| 2025 | +18.5% | +4.0% |
| 2026 | +53.5% | +11.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ANET and CDNS good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ANET and CDNS?
As of 2026-08-27, the correlation of weekly returns between ANET and CDNS is 0.56 over 3 years, 0.34 over 1 year and 0.52 over 5 years.
Is CDNS a good diversifier for ANET?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 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: ANET correlations · CDNS correlations
