CDNS vs QQQM: Correlation
Cadence Design Systems (CDNS) and Invesco Nasdaq 100 ETF (QQQM) 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 QQQM?
On 3 years of weekly data the CDNS/QQQM correlation comes out at 0.66, strong. Recent behaviour matches the longer record: 0.59 over 1 year against 0.66 over 3. The 5-year figure is 0.71, and annualized covariance runs at 458.8 %².
By 3-year correlation, QQQM places #4 of the 34 assets tracked against CDNS. The last year tells two different stories: QQQM led by 26.2 percentage points, +0.2% for CDNS against +26.4% for QQQM. On a rolling one-year basis the correlation drifted between 0.51 and 0.86, a moderate band. One caveat on sizing: CDNS is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 QQQM: side by side
| CDNS (Cadence Design Systems) | QQQM (Invesco Nasdaq 100 ETF) | |
|---|---|---|
| 1-year return | +0.2% | +26.4% |
| 5-year return | +112.1% | +96.1% |
| Volatility (ann.) | 35.8% | 19.5% |
| Beta vs S&P 500 | 1.45 | 1.28 |
| Max drawdown (3Y) | -29.1% | -22.7% |
| Market cap | $95.7B | – |
| P/E (trailing) | 66.7 | – |
| Dividend yield | 0.00% | 0.46% |
| Expense ratio | – | 0.15% |
| Assets under management | – | $97.1B |
| Sector / category | Information Technology | ETF · US Growth & Tech |
QQQM is a Large Growth fund from Invesco: $97.1B under management, 105 holdings, a 0.15% expense ratio, a 0.46% trailing dividend yield.
Year-by-year returns
| Year | CDNS | QQQM |
|---|---|---|
| 2022 | -13.8% | -32.5% |
| 2023 | +69.6% | +55.0% |
| 2024 | +10.3% | +25.7% |
| 2025 | +4.0% | +20.9% |
| 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 QQQM holds CDNS at a 0.41% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are CDNS and QQQM 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 QQQM?
The CDNS/QQQM correlation stands at 0.66 on a 3-year window (1 year: 0.59, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is QQQM 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?
On the −1 to +1 scale, 0.66 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-qqqm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cdns-vs-qqqm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CDNS correlations · QQQM correlations
