CDNS vs SMH: Correlation
Cadence Design Systems (CDNS) and VanEck Semiconductor ETF (SMH) show a strong relationship: their 3-year correlation of weekly returns is 0.63.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and SMH?
Over the past 3 years, CDNS and SMH moved with a correlation of 0.63, which is strong. The link has loosened recently: the 1-year correlation (0.49) runs below the 3-year figure (0.63). Over 5 years the correlation is 0.67, and the annualized covariance of weekly returns is 765.8 %².
Among the 34 assets we track against CDNS, SMH ranks #7 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SMH ahead by 92.9 points (+0.2% versus +93.1%). On a rolling one-year basis the correlation drifted between 0.41 and 0.84, a moderate band.
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 SMH: side by side
| CDNS (Cadence Design Systems) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +0.2% | +93.1% |
| 5-year return | +112.1% | +332.8% |
| Volatility (ann.) | 35.8% | 33.7% |
| Beta vs S&P 500 | 1.45 | 1.91 |
| Max drawdown (3Y) | -29.1% | -35.7% |
| Market cap | $95.7B | – |
| P/E (trailing) | 66.7 | – |
| Dividend yield | 0.00% | – |
| Sector / category | Information Technology | ETF · Thematic |
Year-by-year returns
| Year | CDNS | SMH |
|---|---|---|
| 2022 | -13.8% | -33.5% |
| 2023 | +69.6% | +73.4% |
| 2024 | +10.3% | +39.1% |
| 2025 | +4.0% | +49.2% |
| 2026 | +11.2% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CDNS and SMH good diversifiers for each other?
Only partially. A correlation of 0.63 means CDNS and SMH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between CDNS and SMH?
The CDNS/SMH correlation stands at 0.63 on a 3-year window (1 year: 0.49, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is SMH a good diversifier for CDNS?
Only partially. A correlation of 0.63 means CDNS and SMH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.63 mean?
A reading of 0.63 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-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cdns-vs-smh/)
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Related comparisons
Hubs: CDNS correlations · SMH correlations
