CDNS vs SO: Correlation
Cadence Design Systems (CDNS) and Southern Company (SO) show a negative relationship: their 3-year correlation of weekly returns is -0.26.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and SO?
Over the past 3 years, CDNS and SO moved with a correlation of -0.26, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.21) sits close to the 3-year figure. Over 5 years the correlation is -0.05, and the annualized covariance of weekly returns is -151.3 %².
Among the 34 assets we track against CDNS, SO ranks #29 by 3-year correlation. Their 12-month results are close: +0.2% for CDNS against -1.4% for SO. This link changes with the market regime, having swung between -0.50 and 0.07 on a rolling one-year basis. Note the risk asymmetry: CDNS runs 2.2 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 SO: side by side
| CDNS (Cadence Design Systems) | SO (Southern Company) | |
|---|---|---|
| 1-year return | +0.2% | -1.4% |
| 5-year return | +112.1% | +62.6% |
| Volatility (ann.) | 35.8% | 16.5% |
| Beta vs S&P 500 | 1.45 | -0.02 |
| Max drawdown (3Y) | -29.1% | -15.0% |
| Market cap | $95.7B | $102.4B |
| P/E (trailing) | 66.7 | 21.7 |
| Dividend yield | 0.00% | 3.32% |
| Sector / category | Information Technology | Utilities |
Year-by-year returns
| Year | CDNS | SO |
|---|---|---|
| 2022 | -13.8% | +8.2% |
| 2023 | +69.6% | +2.2% |
| 2024 | +10.3% | +21.7% |
| 2025 | +4.0% | +9.5% |
| 2026 | +11.2% | +4.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CDNS and SO good diversifiers for each other?
By historical standards, yes. A correlation of -0.26 means the two rarely move for the same reasons.
FAQ
What is the correlation between CDNS and SO?
Using weekly returns as of 2026-08-27: -0.26 over 3 years, with -0.21 over the last year and -0.05 over 5 years.
Is SO a good diversifier for CDNS?
By historical standards, yes. A correlation of -0.26 means the two rarely move for the same reasons.
What does a correlation of -0.26 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 · SO correlations
