CDNS vs MTUM: Correlation
Cadence Design Systems (CDNS) and iShares MSCI USA Momentum Factor ETF (MTUM) show a strong relationship: their 3-year correlation of weekly returns is 0.62.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and MTUM?
On 3 years of weekly data the CDNS/MTUM correlation comes out at 0.62, strong. Lately the two have drifted apart, with the 1-year correlation at 0.44 versus 0.62 over 3 years. The 5-year figure is 0.59, and annualized covariance runs at 458.1 %².
Within CDNS's tracked universe of 34 assets, MTUM comes in at #10 by 3-year correlation. Correlation aside, the last 12 months split them widely, with MTUM ahead by 25.0 points (+0.2% versus +25.2%). This link changes with the market regime, having swung between 0.28 and 0.86 on a rolling one-year basis. Risk is not evenly split, since CDNS carries 1.7 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 MTUM: side by side
| CDNS (Cadence Design Systems) | MTUM (iShares MSCI USA Momentum Factor ETF) | |
|---|---|---|
| 1-year return | +0.2% | +25.2% |
| 5-year return | +112.1% | +76.1% |
| Volatility (ann.) | 35.8% | 20.6% |
| Beta vs S&P 500 | 1.45 | 1.25 |
| Max drawdown (3Y) | -29.1% | -21.0% |
| Market cap | $95.7B | – |
| P/E (trailing) | 66.7 | – |
| Dividend yield | 0.00% | 0.62% |
| Expense ratio | – | 0.15% |
| Assets under management | – | $25.3B |
| Sector / category | Information Technology | ETF · US Style |
MTUM is a Large Blend fund from iShares: $25.3B under management, 126 holdings, a 0.15% expense ratio, a 0.62% trailing dividend yield.
Year-by-year returns
| Year | CDNS | MTUM |
|---|---|---|
| 2022 | -13.8% | -18.3% |
| 2023 | +69.6% | +9.1% |
| 2024 | +10.3% | +32.9% |
| 2025 | +4.0% | +22.1% |
| 2026 | +11.2% | +21.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CDNS and MTUM good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CDNS and MTUM?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.44 over the last year and 0.59 over 5 years.
Is MTUM a good diversifier for CDNS?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
A reading of 0.62 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: CDNS correlations · MTUM correlations
