CDNS vs SNPS: Correlation
How closely do Cadence Design Systems (CDNS) and Synopsys (SNPS) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and SNPS?
Over the past 3 years, CDNS and SNPS moved with a correlation of 0.76, which is strong. Recent behaviour matches the longer record: 0.71 over 1 year against 0.76 over 3. Over 5 years the correlation is 0.81, and the annualized covariance of weekly returns is 1155.1 %².
Few assets follow CDNS as closely as SNPS, which ranks #1 of 34 tracked partners. Their recent paths diverged sharply: over the last 12 months CDNS outperformed by 23.1 percentage points (+0.2% for CDNS against -22.9% for SNPS). The rolling one-year correlation stayed in a tight band between 0.66 and 0.90 over the past three years, which points to a structural rather than episodic relationship.
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 SNPS: side by side
| CDNS (Cadence Design Systems) | SNPS (Synopsys) | |
|---|---|---|
| 1-year return | +0.2% | -22.9% |
| 5-year return | +112.1% | +39.1% |
| Volatility (ann.) | 35.8% | 42.2% |
| Beta vs S&P 500 | 1.45 | 1.57 |
| Max drawdown (3Y) | -29.1% | -42.3% |
| Market cap | $95.7B | $89.1B |
| P/E (trailing) | 66.7 | 71.4 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | CDNS | SNPS |
|---|---|---|
| 2022 | -13.8% | -13.4% |
| 2023 | +69.6% | +61.3% |
| 2024 | +10.3% | -5.7% |
| 2025 | +4.0% | -3.2% |
| 2026 | +11.2% | -1.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CDNS and SNPS good diversifiers for each other?
To a limited degree. At 0.76 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 SNPS?
As of 2026-08-27, the correlation of weekly returns between CDNS and SNPS is 0.76 over 3 years, 0.71 over 1 year and 0.81 over 5 years.
Is SNPS a good diversifier for CDNS?
To a limited degree. At 0.76 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 0.76 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: CDNS correlations · SNPS correlations
