Cadence Design Correlations

CDNS Stock

USD 267.35 0.20 0.07%

The current 90-days correlation between Cadence Design Systems and Workday is 0.4 (i.e., Very weak diversification). The correlation of Cadence Design is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Cadence Design Correlation With Market

Weak diversification

The correlation between Cadence Design Systems and DJI is 0.37 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cadence Design Systems and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cadence Design Systems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Moving together with Cadence Stock

0.69	DJCO	Daily Journal Corp	Pair Corr
0.91	AI	C3 Ai Inc	Pair Corr
0.88	BL	Blackline	Pair Corr
0.63	DV	DoubleVerify Holdings	Pair Corr
0.84	EB	Eventbrite Class A	Pair Corr
0.8	WK	Workiva	Pair Corr
0.75	ZM	Zoom Video Communications	Pair Corr
0.86	DOCU	DocuSign	Pair Corr
0.93	VERX	Vertex	Pair Corr
0.73	VERB	Verb Technology Earnings Call This Week	Pair Corr
0.82	DSGX	Descartes Systems	Pair Corr
0.86	VMEO	Vimeo Inc	Pair Corr
0.78	VTEX	VTEX	Pair Corr
0.84	EGAN	eGain	Pair Corr
0.68	EGHT	8x8 Common Stock	Pair Corr
0.87	ELWS	Earlyworks Co, Tech Boost	Pair Corr
0.89	WBTN	WEBTOON Entertainment	Pair Corr
0.73	WFCF	Where Food Comes	Pair Corr
0.88	ETWO	E2open Parent Holdings Tech Boost	Pair Corr
0.84	ANY	Sphere 3D Corp	Pair Corr

Moving against Cadence Stock

0.67	KC	Kingsoft Cloud Holdings	Pair Corr
0.57	QH	Quhuo	Pair Corr
0.51	ENFN	Enfusion	Pair Corr
0.49	ZI	ZoomInfo Technologies	Pair Corr
0.39	VCSA	Vacasa Inc	Pair Corr
0.34	API	Agora Inc	Pair Corr
0.31	FROG	Jfrog	Pair Corr

Related Correlations Analysis

	WDAY	CRM	INTU	SNOW	TEAM	ZM	NOW	PAYC	DDOG	TTD
WDAY		0.67	0.3	0.54	0.63	0.68	0.54	0.2	0.6	0.47	WDAY
CRM	0.67		0.37	0.51	0.48	0.86	0.94	-0.25	0.96	0.89	CRM
INTU	0.3	0.37		-0.34	-0.33	0.14	0.46	0.11	0.45	0.48	INTU
SNOW	0.54	0.51	-0.34		0.91	0.61	0.38	0.03	0.43	0.27	SNOW
TEAM	0.63	0.48	-0.33	0.91		0.59	0.31	0.0	0.43	0.27	TEAM
ZM	0.68	0.86	0.14	0.61	0.59		0.7	-0.27	0.83	0.7	ZM
NOW	0.54	0.94	0.46	0.38	0.31	0.7		-0.28	0.93	0.92	NOW
PAYC	0.2	-0.25	0.11	0.03	0.0	-0.27	-0.28		-0.35	-0.42	PAYC
DDOG	0.6	0.96	0.45	0.43	0.43	0.83	0.93	-0.35		0.96	DDOG
TTD	0.47	0.89	0.48	0.27	0.27	0.7	0.92	-0.42	0.96		TTD
	WDAY	CRM	INTU	SNOW	TEAM	ZM	NOW	PAYC	DDOG	TTD

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

DDOG	+ 0.96	CRM
TTD	+ 0.96	DDOG
NOW	+ 0.94	CRM
DDOG	+ 0.93	NOW
TTD	+ 0.92	NOW
TEAM	+ 0.91	SNOW

High negative correlations

TTD	- 0.42	PAYC
DDOG	- 0.35	PAYC
SNOW	- 0.34	INTU
TEAM	- 0.33	INTU
PAYC	- 0.28	NOW
PAYC	- 0.27	ZM

Risk-Adjusted Indicators

There is a big difference between Cadence Stock performing well and Cadence Design Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Cadence Design's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
WDAY	1.56	(0.12)	(0.18)	2.93	(3.27)	10.21
CRM	1.40	(0.29)	(0.29)	2.72	(3.81)	8.88
INTU	1.42	(0.10)	(0.18)	2.24	(2.35)	17.47
SNOW	2.09	0.00	(0.04)	3.60	(3.93)	19.02
TEAM	2.46	(0.15)	(0.13)	4.30	(7.26)	24.54
ZM	1.31	(0.07)	(0.13)	2.54	(3.01)	16.58
NOW	1.82	(0.36)	(0.30)	2.66	(4.82)	14.05
PAYC	1.50	(0.01)	(0.06)	2.62	(3.40)	10.47
DDOG	1.85	(0.47)	(0.50)	3.12	(4.28)	15.08
TTD	2.69	(1.05)	(1.51)	3.89	(5.25)	37.45

Cadence Design Corporate Management

Thomas Beckley	Sr. VP and General Manager of Custom IC and PCB Group	Profile
Sandhya Venkateshan	Vice Finance	Profile
Paul Cunningham	Senior Group	Profile
Nimish Modi	Senior Ventures	Profile
Ariel Sella	CoFounder	Profile
Aneel Zaman	Senior Officer	Profile

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