CDNS vs PEP: Correlation
Cadence Design Systems (CDNS) and PepsiCo (PEP) show a negative relationship: their 3-year correlation of weekly returns is -0.23.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and PEP?
Over the past 3 years, CDNS and PEP moved with a correlation of -0.23, which is negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.24 lands near the 3-year figure. Over 5 years the correlation is -0.06, and the annualized covariance of weekly returns is -155.9 %².
By 3-year correlation, PEP places #27 of the 34 assets tracked against CDNS. Their 12-month results are close: +0.2% for CDNS against -1.6% for PEP. Across three years, the rolling one-year figure varied moderately, from -0.41 to 0.08. 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 PEP: side by side
| CDNS (Cadence Design Systems) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | +0.2% | -1.6% |
| 5-year return | +112.1% | +4.9% |
| Volatility (ann.) | 35.8% | 19.1% |
| Beta vs S&P 500 | 1.45 | 0.13 |
| Max drawdown (3Y) | -29.1% | -27.5% |
| Market cap | $95.7B | $190.9B |
| P/E (trailing) | 66.7 | 18.6 |
| Dividend yield | 0.00% | 4.04% |
| Sector / category | Information Technology | Consumer Staples |
Year-by-year returns
| Year | CDNS | PEP |
|---|---|---|
| 2022 | -13.8% | +6.8% |
| 2023 | +69.6% | -3.3% |
| 2024 | +10.3% | -7.6% |
| 2025 | +4.0% | -1.8% |
| 2026 | +11.2% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CDNS and PEP good diversifiers for each other?
Yes: at -0.23, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between CDNS and PEP?
The CDNS/PEP correlation stands at -0.23 on a 3-year window (1 year: -0.24, 5 years: -0.06), computed from weekly returns as of 2026-08-27.
Is PEP a good diversifier for CDNS?
Yes: at -0.23, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.23 mean?
On the −1 to +1 scale, -0.23 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-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cdns-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CDNS correlations · PEP correlations
