CDNS vs XLK: Correlation
How closely do Cadence Design Systems (CDNS) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDNS and XLK?
Across a 3-year window, the weekly returns of CDNS and XLK correlate at 0.67, strong. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. Stretching to 5 years gives 0.72, with an annualized covariance of 577.1 %².
Few assets follow CDNS as closely as XLK, which ranks #2 of 34 tracked partners. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 43.2 percentage points (+0.2% for CDNS against +43.4% for XLK). Across three years, the rolling one-year figure varied moderately, from 0.53 to 0.87.
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 XLK: side by side
| CDNS (Cadence Design Systems) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +0.2% | +43.4% |
| 5-year return | +112.1% | +145.2% |
| Volatility (ann.) | 35.8% | 24.0% |
| Beta vs S&P 500 | 1.45 | 1.50 |
| Max drawdown (3Y) | -29.1% | -25.7% |
| Market cap | $95.7B | – |
| P/E (trailing) | 66.7 | – |
| Dividend yield | 0.00% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Information Technology | Sector ETF |
On the fund side, XLK sits in the Technology category at State Street Investment Management, with $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield.
Year-by-year returns
| Year | CDNS | XLK |
|---|---|---|
| 2022 | -13.8% | -27.7% |
| 2023 | +69.6% | +56.0% |
| 2024 | +10.3% | +21.6% |
| 2025 | +4.0% | +24.6% |
| 2026 | +11.2% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
CDNS represents 0.62% of XLK's portfolio, so part of any move in XLK is CDNS itself, and the correlation between them is partly mechanical.
Are CDNS and XLK good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CDNS and XLK?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.60 over the last year and 0.72 over 5 years.
Is XLK a good diversifier for CDNS?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.67 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cdns-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cdns-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CDNS correlations · XLK correlations
