CRNC vs. SOUNW

Last updated Jun 5, 2026

CRNC (Cerence Inc.) and SOUNW (SoundHound AI Inc.) are both stocks. Both operate in the Software - Application industry within the Technology sector. Over the past 5 years, CRNC returned -35.25%/yr vs 30.99%/yr for SOUNW. At a 0.24 correlation, their price movements are largely independent.

Performance

CRNC vs. SOUNW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Cerence Inc. (CRNC) and SoundHound AI Inc. (SOUNW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CRNC achieves a 15.34% return, which is significantly higher than SOUNW's -30.17% return.

CRNC

• 1D: 0.41%
• 1M: 25.05%
• YTD: 15.34%
• 6M: -4.79%
• 1Y: 26.85%
• 3Y*: -24.28%
• 5Y*: -35.25%
• 10Y*: —

SOUNW

• 1D: 0.21%
• 1M: -22.12%
• YTD: -30.17%
• 6M: -53.63%
• 1Y: -43.49%
• 3Y*: 88.99%
• 5Y*: 30.99%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

CRNC vs. SOUNW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
CRNC Cerence Inc.	15.34%	36.18%	-60.07%	6.10%	-75.82%	-22.66%
SOUNW SoundHound AI Inc.	-30.17%	-69.90%	3,356.94%	122.93%	-87.18%	28.57%

Correlation

The correlation between CRNC and SOUNW is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.24
Correlation (All Time) Calculated using the full available price history since Apr 27, 2021	0.24

The correlation between CRNC and SOUNW shifts across timeframes, from 0.24 (all time) to 0.42 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap CRNC : $578.26M SOUNW : $822.46M
EPS CRNC : -$0.44 SOUNW : -$0.43
PS Ratio CRNC : 1.82 SOUNW : 5.18
PB Ratio CRNC : 3.65 SOUNW : 1.79
Total Revenue (TTM) CRNC : $302.14M SOUNW : $183.99M
Gross Profit (TTM) CRNC : $235.95M SOUNW : $69.84M
EBITDA (TTM) CRNC : $34.08M SOUNW : -$124.47M

Return for Risk

CRNC vs. SOUNW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CRNC

CRNC Risk / Return Rank: 54
CRNC Sharpe Ratio Rank: 53
CRNC Sortino Ratio Rank: 57
CRNC Omega Ratio Rank: 55
CRNC Calmar Ratio Rank: 53
CRNC Martin Ratio Rank: 53

SOUNW

SOUNW Risk / Return Rank: 28
SOUNW Sharpe Ratio Rank: 25
SOUNW Sortino Ratio Rank: 34
SOUNW Omega Ratio Rank: 33
SOUNW Calmar Ratio Rank: 23
SOUNW Martin Ratio Rank: 26

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CRNC vs. SOUNW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Cerence Inc. (CRNC) and SoundHound AI Inc. (SOUNW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	CRNC	SOUNW	Difference
Sharpe ratio: Return per unit of total volatility	0.31	-0.37	+0.68
Sortino ratio: Return per unit of downside risk	1.12	0.12	+1.00
Omega ratio: Gain probability vs. loss probability	1.13	1.01	+0.12
Calmar ratio: Return relative to maximum drawdown	0.48	-0.53	+1.01
Martin ratio: Return relative to average drawdown	1.01	-0.83	+1.84
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CRNC vs. SOUNW - Sharpe Ratio Comparison

The current CRNC Sharpe Ratio is 0.31, which is higher than the SOUNW Sharpe Ratio of -0.37. The chart below compares the historical Sharpe Ratios of CRNC and SOUNW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CRNC	SOUNW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.31	-0.37	+0.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.31	0.14	-0.45
Sharpe Ratio (All Time) Calculated using the full available price history	-0.03	0.10	-0.13

Drawdowns

CRNC vs. SOUNW - Drawdown Comparison

The maximum CRNC drawdown since its inception was -98.22%, roughly equal to the maximum SOUNW drawdown of -94.64%. Use the drawdown chart below to compare losses from any high point for CRNC and SOUNW.

Drawdown Indicators

	CRNC	SOUNW	Difference
Max Drawdown Largest peak-to-trough decline	-98.22%	-94.64%	-3.58%
Max Drawdown (1Y) Largest decline over 1 year	-55.92%	-82.42%	+26.50%
Max Drawdown (3Y) Largest decline over 3 years	-93.25%	-89.36%	-3.89%
Max Drawdown (5Y) Largest decline over 5 years	-98.09%	-94.64%	-3.45%
Current Drawdown Current decline from peak	-90.76%	-85.64%	-5.12%
Average Drawdown Average peak-to-trough decline	-62.97%	-60.70%	-2.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	26.78%	52.25%	-25.47%

Volatility

CRNC vs. SOUNW - Volatility Comparison

The current volatility for Cerence Inc. (CRNC) is 22.33%, while SoundHound AI Inc. (SOUNW) has a volatility of 25.43%. This indicates that CRNC experiences smaller price fluctuations and is considered to be less risky than SOUNW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CRNC	SOUNW	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.33%	25.43%	-3.10%
Volatility (6M) Calculated over the trailing 6-month period	56.54%	80.45%	-23.91%
Volatility (1Y) Calculated over the trailing 1-year period	86.31%	117.84%	-31.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	113.49%	224.95%	-111.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	106.36%	222.96%	-116.60%

Dividends

CRNC vs. SOUNW - Dividend Comparison

Neither CRNC nor SOUNW has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

Frequently Asked Questions

Can I hold both CRNC and SOUNW in my portfolio?

CRNC and SOUNW have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CRNC or SOUNW?

SOUNW has higher volatility (25.43%) compared to CRNC (22.33%). In terms of maximum drawdown, CRNC dropped -98.22% vs SOUNW's -94.64%.

Which has better risk-adjusted returns?

CRNC currently has the higher Sharpe Ratio (0.31 vs -0.37), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.