CDNS vs QQQ: Correlation
Cadence Design Systems (CDNS) and Invesco QQQ Trust (QQQ) show a strong relationship: their 3-year correlation of weekly returns is 0.66.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and QQQ?
Over the past 3 years, CDNS and QQQ moved with a correlation of 0.66, which is strong. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. Over 5 years the correlation is 0.71, and the annualized covariance of weekly returns is 460.9 %².
In CDNS's tracked universe of 34 assets, QQQ sits right near the top at #3. The last year tells two different stories: QQQ led by 26.1 percentage points, +0.2% for CDNS against +26.3% for QQQ. The rolling one-year correlation moved between 0.51 and 0.86 over the past three years, a moderate range. Note the risk asymmetry: CDNS runs 1.8 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 QQQ: side by side
| CDNS (Cadence Design Systems) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +0.2% | +26.3% |
| 5-year return | +112.1% | +95.4% |
| Volatility (ann.) | 35.8% | 19.6% |
| Beta vs S&P 500 | 1.45 | 1.28 |
| Max drawdown (3Y) | -29.1% | -22.8% |
| Market cap | $95.7B | – |
| P/E (trailing) | 66.7 | – |
| Dividend yield | 0.00% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Information Technology | ETF · US Growth & Tech |
QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | CDNS | QQQ |
|---|---|---|
| 2022 | -13.8% | -32.6% |
| 2023 | +69.6% | +54.9% |
| 2024 | +10.3% | +25.6% |
| 2025 | +4.0% | +20.8% |
| 2026 | +11.2% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that QQQ holds CDNS at a 0.41% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are CDNS and QQQ good diversifiers for each other?
To a limited degree. At 0.66 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between CDNS and QQQ?
The CDNS/QQQ correlation stands at 0.66 on a 3-year window (1 year: 0.58, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for CDNS?
To a limited degree. At 0.66 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.66 mean?
A reading of 0.66 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cdns-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cdns-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CDNS correlations · QQQ correlations
