CDNS vs VUG: Correlation
How closely do Cadence Design Systems (CDNS) and Vanguard Growth ETF (VUG) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and VUG?
Across a 3-year window, the weekly returns of CDNS and VUG correlate at 0.64, strong. The past 12 months show a weaker link (0.53) than the 3-year average (0.64). Stretching to 5 years gives 0.70, with an annualized covariance of 442.1 %².
Among the 34 assets we track against CDNS, VUG ranks #6 by 3-year correlation. The last year tells two different stories: VUG led by 16.0 percentage points, +0.2% for CDNS against +16.2% for VUG. Across three years, the rolling one-year figure varied moderately, from 0.46 to 0.85. Risk is not evenly split, since CDNS carries 1.8 times the volatility of the other side.
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 VUG: side by side
| CDNS (Cadence Design Systems) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +0.2% | +16.2% |
| 5-year return | +112.1% | +78.4% |
| Volatility (ann.) | 35.8% | 19.4% |
| Beta vs S&P 500 | 1.45 | 1.28 |
| Max drawdown (3Y) | -29.1% | -22.8% |
| Market cap | $95.7B | – |
| P/E (trailing) | 66.7 | – |
| Dividend yield | 0.00% | 0.40% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $372.0B |
| Sector / category | Information Technology | ETF · US Style |
VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Year-by-year returns
| Year | CDNS | VUG |
|---|---|---|
| 2022 | -13.8% | -33.2% |
| 2023 | +69.6% | +46.8% |
| 2024 | +10.3% | +32.7% |
| 2025 | +4.0% | +19.4% |
| 2026 | +11.2% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
CDNS represents 0.28% of VUG's portfolio, so part of any move in VUG is CDNS itself, and the correlation between them is partly mechanical.
Are CDNS and VUG good diversifiers for each other?
Only partially. A correlation of 0.64 means CDNS and VUG 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 VUG?
The CDNS/VUG correlation stands at 0.64 on a 3-year window (1 year: 0.53, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for CDNS?
Only partially. A correlation of 0.64 means CDNS and VUG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.64 mean?
A reading of 0.64 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-vug.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cdns-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CDNS correlations · VUG correlations
