SHOP vs. CDNS
SHOP (Shopify Inc.) and CDNS (Cadence Design Systems, Inc.) are both stocks. Both operate in the Software - Application industry within the Technology sector. Over the past 10 years, SHOP returned 44.31%/yr vs 31.92%/yr for CDNS. A 0.50 correlation means they provide meaningful diversification when combined.
Performance
SHOP vs. CDNS - Performance Comparison
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Returns By Period
In the year-to-date period, SHOP achieves a -31.18% return, which is significantly lower than CDNS's 26.12% return. Over the past 10 years, SHOP has outperformed CDNS with an annualized return of 44.31%, while CDNS has yielded a comparatively lower 31.92% annualized return.
SHOP
- 1D
- 1.13%
- 1M
- 0.34%
- YTD
- -31.18%
- 6M
- -30.07%
- 1Y
- -0.57%
- 3Y*
- 21.77%
- 5Y*
- -1.84%
- 10Y*
- 44.31%
CDNS
- 1D
- 4.80%
- 1M
- 8.70%
- YTD
- 26.12%
- 6M
- 16.88%
- 1Y
- 32.76%
- 3Y*
- 19.80%
- 5Y*
- 25.79%
- 10Y*
- 31.92%
SHOP vs. CDNS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHOP Shopify Inc. | -31.18% | 51.39% | 36.50% | 124.43% | -74.80% | 21.68% | 184.71% | 187.17% | 37.08% | 135.60% |
CDNS Cadence Design Systems, Inc. | 26.12% | 4.03% | 10.31% | 69.55% | -13.80% | 36.59% | 96.70% | 59.52% | 3.97% | 65.82% |
Correlation
The correlation between SHOP and CDNS 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 | 0.48 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.52 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.52 |
Correlation (All Time) Calculated using the full available price history since May 22, 2015 | 0.50 |
The correlation between SHOP and CDNS shifts across timeframes, from 0.42 (1 year) to 0.52 (10 years), reflecting how their relationship changes across market environments.
Fundamentals
SHOP:
$144.39B
CDNS:
$107.91B
SHOP:
$1.02
CDNS:
$4.28
SHOP:
108.75
CDNS:
92.03
SHOP:
0.21
CDNS:
7.02
SHOP:
15.75
CDNS:
19.49
SHOP:
11.55
CDNS:
12.37
SHOP:
$9.20B
CDNS:
$5.53B
SHOP:
$5.93B
CDNS:
$4.91B
SHOP:
$1.60B
CDNS:
$1.87B
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Return for Risk
SHOP vs. CDNS — Risk / Return Rank
SHOP
CDNS
SHOP vs. CDNS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Shopify Inc. (SHOP) and Cadence Design Systems, Inc. (CDNS). 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.
| SHOP | CDNS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.86 | ||
| Sortino ratioReturn per unit of downside risk | -1.03 | ||
| Omega ratioGain probability vs. loss probability | 1.05 | 1.18 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | -0.01 | 1.14 | -1.15 |
| Martin ratioReturn relative to average drawdown | -0.03 | 2.42 | -2.44 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SHOP | CDNS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.01 | 0.85 | -0.86 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.03 | 0.72 | -0.74 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.75 | 0.94 | -0.19 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.69 | 0.24 | +0.45 |
Drawdowns
SHOP vs. CDNS - Drawdown Comparison
The maximum SHOP drawdown since its inception was -84.82%, smaller than the maximum CDNS drawdown of -93.13%. Use the drawdown chart below to compare losses from any high point for SHOP and CDNS.
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Drawdown Indicators
| SHOP | CDNS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -84.82% | -93.13% | +8.31% |
Max Drawdown (1Y)Largest decline over 1 year | -46.71% | -28.85% | -17.86% |
Max Drawdown (3Y)Largest decline over 3 years | -46.71% | -29.05% | -17.66% |
Max Drawdown (5Y)Largest decline over 5 years | -84.82% | -29.59% | -55.23% |
Max Drawdown (10Y)Largest decline over 10 years | -84.82% | -32.12% | -52.70% |
Current DrawdownCurrent decline from peak | -38.12% | -5.32% | -32.80% |
Average DrawdownAverage peak-to-trough decline | -28.22% | -39.64% | +11.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 21.74% | 13.60% | +8.14% |
Volatility
SHOP vs. CDNS - Volatility Comparison
Shopify Inc. (SHOP) has a higher volatility of 17.86% compared to Cadence Design Systems, Inc. (CDNS) at 16.58%. This indicates that SHOP's price experiences larger fluctuations and is considered to be riskier than CDNS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHOP | CDNS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 17.86% | 16.58% | +1.28% |
Volatility (6M)Calculated over the trailing 6-month period | 43.67% | 31.69% | +11.98% |
Volatility (1Y)Calculated over the trailing 1-year period | 57.27% | 39.02% | +18.25% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 65.57% | 36.20% | +29.37% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 59.09% | 34.13% | +24.96% |
Dividends
SHOP vs. CDNS - Dividend Comparison
Neither SHOP nor CDNS has paid dividends to shareholders.
Financials
SHOP vs. CDNS - Financials Comparison
This section allows you to compare key financial metrics between Shopify Inc. and Cadence Design Systems, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
Frequently Asked Questions
SHOP and CDNS 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.
SHOP has higher volatility (17.86%) compared to CDNS (16.58%). In terms of maximum drawdown, SHOP dropped -84.82% vs CDNS's -93.13%.
CDNS currently has the higher Sharpe Ratio (0.85 vs -0.01), 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.
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