CDNS vs NJR: Correlation
Cadence Design Systems (CDNS) and NewJersey Resources Corporation (NJR) show a negative relationship: their 3-year correlation of weekly returns is -0.22.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and NJR?
Over the past 3 years, CDNS and NJR moved with a correlation of -0.22, which is negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.36) than the 3-year average (-0.22). Over 5 years the correlation is 0.01, and the annualized covariance of weekly returns is -142.8 %².
By 3-year correlation, NJR places #26 of the 34 assets tracked against CDNS. Their recent paths diverged sharply: over the last 12 months NJR outperformed by 17.6 percentage points (+0.2% for CDNS against +17.8% for NJR). Note the risk asymmetry: CDNS runs 2.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 NJR: side by side
| CDNS (Cadence Design Systems) | NJR (NewJersey Resources Corporation) | |
|---|---|---|
| 1-year return | +0.2% | +17.8% |
| 5-year return | +112.1% | +74.0% |
| Volatility (ann.) | 35.8% | 18.2% |
| Beta vs S&P 500 | 1.45 | 0.06 |
| Max drawdown (3Y) | -29.1% | -12.9% |
| Market cap | $95.7B | $5.5B |
| P/E (trailing) | 66.7 | 15.1 |
| Dividend yield | 0.00% | 3.49% |
| Sector / category | Information Technology | US Listed |
Year-by-year returns
| Year | CDNS | NJR |
|---|---|---|
| 2022 | -13.8% | +24.9% |
| 2023 | +69.6% | -6.9% |
| 2024 | +10.3% | +8.7% |
| 2025 | +4.0% | +2.9% |
| 2026 | +11.2% | +18.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CDNS and NJR good diversifiers for each other?
Yes. With a correlation of -0.22, CDNS and NJR have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between CDNS and NJR?
The CDNS/NJR correlation stands at -0.22 on a 3-year window (1 year: -0.36, 5 years: 0.01), computed from weekly returns as of 2026-08-27.
Is NJR a good diversifier for CDNS?
Yes. With a correlation of -0.22, CDNS and NJR have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.22 mean?
On the −1 to +1 scale, -0.22 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.
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[](https://www.pairbook.io/pair/cdns-vs-njr/)
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Related comparisons
Hubs: CDNS correlations · NJR correlations
