CDNS vs MSFT: Correlation
How closely do Cadence Design Systems (CDNS) and Microsoft (MSFT) trade together? Their weekly returns over three years give a correlation of 0.51, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and MSFT?
Over the past 3 years, CDNS and MSFT moved with a correlation of 0.51, which is moderate. The past 12 months show a weaker link (0.41) than the 3-year average (0.51). Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 501.0 %².
By 3-year correlation, MSFT places #19 of the 34 assets tracked against CDNS. Neither side won the trailing year by much: +0.2% against +0.5%. Across three years, the rolling one-year figure varied moderately, from 0.39 to 0.79.
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 MSFT: side by side
| CDNS (Cadence Design Systems) | MSFT (Microsoft) | |
|---|---|---|
| 1-year return | +0.2% | +0.5% |
| 5-year return | +112.1% | +73.3% |
| Volatility (ann.) | 35.8% | 27.5% |
| Beta vs S&P 500 | 1.45 | 1.12 |
| Max drawdown (3Y) | -29.1% | -34.5% |
| Market cap | $95.7B | $3,750.3B |
| P/E (trailing) | 66.7 | 28.1 |
| Dividend yield | 0.00% | 0.73% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | CDNS | MSFT |
|---|---|---|
| 2022 | -13.8% | -28.0% |
| 2023 | +69.6% | +58.2% |
| 2024 | +10.3% | +12.9% |
| 2025 | +4.0% | +15.6% |
| 2026 | +11.2% | +5.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CDNS and MSFT good diversifiers for each other?
Only partially. A correlation of 0.51 means CDNS and MSFT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between CDNS and MSFT?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.41 over the last year and 0.61 over 5 years.
Is MSFT a good diversifier for CDNS?
Only partially. A correlation of 0.51 means CDNS and MSFT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.51 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-msft.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cdns-vs-msft/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CDNS correlations · MSFT correlations
