CDNS vs SPY: Correlation
How closely do Cadence Design Systems (CDNS) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.59, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and SPY?
Over the past 3 years, CDNS and SPY moved with a correlation of 0.59, which is moderate. Recent behaviour matches the longer record: 0.50 over 1 year against 0.59 over 3. Over 5 years the correlation is 0.63, and the annualized covariance of weekly returns is 302.9 %².
Among the 34 assets we track against CDNS, SPY ranks #15 by 3-year correlation. The last year tells two different stories: SPY led by 20.4 percentage points, +0.2% for CDNS against +20.6% for SPY. The rolling one-year correlation moved between 0.41 and 0.77 over the past three years, a moderate range. One caveat on sizing: CDNS is 2.5 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 SPY: side by side
| CDNS (Cadence Design Systems) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +0.2% | +20.6% |
| 5-year return | +112.1% | +82.4% |
| Volatility (ann.) | 35.8% | 14.5% |
| Beta vs S&P 500 | 1.45 | 1.00 |
| Max drawdown (3Y) | -29.1% | -18.8% |
| Market cap | $95.7B | – |
| P/E (trailing) | 66.7 | – |
| Dividend yield | 0.00% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Information Technology | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | CDNS | SPY |
|---|---|---|
| 2022 | -13.8% | -18.2% |
| 2023 | +69.6% | +26.2% |
| 2024 | +10.3% | +24.9% |
| 2025 | +4.0% | +17.7% |
| 2026 | +11.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SPY holds CDNS at a 0.14% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are CDNS and SPY good diversifiers for each other?
To a limited degree. At 0.59 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 SPY?
The CDNS/SPY correlation stands at 0.59 on a 3-year window (1 year: 0.50, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for CDNS?
To a limited degree. At 0.59 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 0.59 mean?
A reading of 0.59 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Hubs: CDNS correlations · SPY correlations
