CDNS vs WTRG: Correlation
How closely do Cadence Design Systems (CDNS) and Essential Utilities, Inc. (WTRG) trade together? Their weekly returns over three years give a correlation of -0.21, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and WTRG?
On 3 years of weekly data the CDNS/WTRG correlation comes out at -0.21, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.28 over 1 year against -0.21 over 3. The 5-year figure is 0.07, and annualized covariance runs at -150.4 %².
Within CDNS's tracked universe of 34 assets, WTRG comes in at #25 by 3-year correlation. On 12-month performance WTRG holds a 5.4-point edge, +0.2% against +5.6%. 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 WTRG: side by side
| CDNS (Cadence Design Systems) | WTRG (Essential Utilities, Inc.) | |
|---|---|---|
| 1-year return | +0.2% | +5.6% |
| 5-year return | +112.1% | -5.2% |
| Volatility (ann.) | 35.8% | 19.6% |
| Beta vs S&P 500 | 1.45 | -0.04 |
| Max drawdown (3Y) | -29.1% | -17.9% |
| Market cap | $95.7B | $11.5B |
| P/E (trailing) | 66.7 | 20.9 |
| Dividend yield | 0.00% | 3.36% |
| Sector / category | Information Technology | US Listed |
Year-by-year returns
| Year | CDNS | WTRG |
|---|---|---|
| 2022 | -13.8% | -8.9% |
| 2023 | +69.6% | -19.4% |
| 2024 | +10.3% | +0.5% |
| 2025 | +4.0% | +9.4% |
| 2026 | +11.2% | +8.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CDNS and WTRG good diversifiers for each other?
By historical standards, yes. A correlation of -0.21 means the two rarely move for the same reasons.
FAQ
What is the correlation between CDNS and WTRG?
Using weekly returns as of 2026-08-27: -0.21 over 3 years, with -0.28 over the last year and 0.07 over 5 years.
Is WTRG a good diversifier for CDNS?
By historical standards, yes. A correlation of -0.21 means the two rarely move for the same reasons.
What does a correlation of -0.21 mean?
A reading of -0.21 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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Related comparisons
Hubs: CDNS correlations · WTRG correlations
