CDNS vs JNJ: Correlation
How closely do Cadence Design Systems (CDNS) and Johnson & Johnson (JNJ) trade together? Their weekly returns over three years give a correlation of -0.21, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and JNJ?
Over the past 3 years, CDNS and JNJ moved with a correlation of -0.21, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.31) sits close to the 3-year figure. Over 5 years the correlation is -0.08, and the annualized covariance of weekly returns is -138.2 %².
Among the 34 assets we track against CDNS, JNJ ranks #23 by 3-year correlation. Correlation aside, the last 12 months split them widely, with JNJ ahead by 53.5 points (+0.2% versus +53.7%). The rolling one-year correlation moved between -0.40 and 0.04 over the past three years, a moderate range. Risk is not evenly split, since CDNS carries 1.9 times the volatility of the other side.
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 JNJ: side by side
| CDNS (Cadence Design Systems) | JNJ (Johnson & Johnson) | |
|---|---|---|
| 1-year return | +0.2% | +53.7% |
| 5-year return | +112.1% | +76.0% |
| Volatility (ann.) | 35.8% | 18.5% |
| Beta vs S&P 500 | 1.45 | 0.05 |
| Max drawdown (3Y) | -29.1% | -14.4% |
| Market cap | $95.7B | $640.5B |
| P/E (trailing) | 66.7 | 30.9 |
| Dividend yield | 0.00% | 1.94% |
| Sector / category | Information Technology | Health Care |
Year-by-year returns
| Year | CDNS | JNJ |
|---|---|---|
| 2022 | -13.8% | +6.0% |
| 2023 | +69.6% | -8.6% |
| 2024 | +10.3% | -4.8% |
| 2025 | +4.0% | +47.5% |
| 2026 | +11.2% | +30.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CDNS and JNJ good diversifiers for each other?
Yes. With a correlation of -0.21, CDNS and JNJ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between CDNS and JNJ?
Using weekly returns as of 2026-08-27: -0.21 over 3 years, with -0.31 over the last year and -0.08 over 5 years.
Is JNJ a good diversifier for CDNS?
Yes. With a correlation of -0.21, CDNS and JNJ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.21 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cdns-vs-jnj.json
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Related comparisons
Hubs: CDNS correlations · JNJ correlations
