CDNS vs ED: Correlation
How closely do Cadence Design Systems (CDNS) and Consolidated Edison (ED) trade together? Their weekly returns over three years give a correlation of -0.31, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and ED?
On 3 years of weekly data the CDNS/ED correlation comes out at -0.31, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.32 lands near the 3-year figure. The 5-year figure is -0.10, and annualized covariance runs at -184.6 %².
ED is close to the least connected end of CDNS's tracked universe, ranking #31 of 34. Over the last 12 months ED came out ahead by 10.0 percentage points (+0.2% against +10.2%). The relationship is regime-dependent: the rolling one-year correlation swung between -0.55 and 0.07 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: CDNS is 2.2 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
CDNS vs ED: side by side
| CDNS (Cadence Design Systems) | ED (Consolidated Edison) | |
|---|---|---|
| 1-year return | +0.2% | +10.2% |
| 5-year return | +112.1% | +67.5% |
| Volatility (ann.) | 35.8% | 16.5% |
| Beta vs S&P 500 | 1.45 | -0.21 |
| Max drawdown (3Y) | -29.1% | -17.4% |
| Market cap | $95.7B | $39.5B |
| P/E (trailing) | 66.7 | 17.5 |
| Dividend yield | 0.00% | 3.22% |
| Sector / category | Information Technology | Utilities |
Year-by-year returns
| Year | CDNS | ED |
|---|---|---|
| 2022 | -13.8% | +15.7% |
| 2023 | +69.6% | -1.1% |
| 2024 | +10.3% | +1.5% |
| 2025 | +4.0% | +15.1% |
| 2026 | +11.2% | +10.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CDNS and ED good diversifiers for each other?
By historical standards, yes. A correlation of -0.31 means the two rarely move for the same reasons.
FAQ
What is the correlation between CDNS and ED?
Using weekly returns as of 2026-08-27: -0.31 over 3 years, with -0.32 over the last year and -0.10 over 5 years.
Is ED a good diversifier for CDNS?
By historical standards, yes. A correlation of -0.31 means the two rarely move for the same reasons.
What does a correlation of -0.31 mean?
On the −1 to +1 scale, -0.31 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cdns-vs-ed.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cdns-vs-ed/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CDNS correlations · ED correlations
