SOUNW vs. CRNC

Last updated Jun 5, 2026

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

Performance

SOUNW vs. CRNC - Performance Comparison

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

Returns By Period

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

SOUNW

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

CRNC

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

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

SOUNW vs. CRNC - Yearly Performance Comparison

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

Correlation

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

Fundamentals

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

Return for Risk

SOUNW vs. CRNC — Risk / Return Rank

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

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

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

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.

SOUNW vs. CRNC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SoundHound AI Inc. (SOUNW) and Cerence Inc. (CRNC). 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.

	SOUNW	CRNC	Difference
Sharpe ratio: Return per unit of total volatility	-0.37	0.31	-0.68
Sortino ratio: Return per unit of downside risk	0.12	1.12	-1.00
Omega ratio: Gain probability vs. loss probability	1.01	1.13	-0.12
Calmar ratio: Return relative to maximum drawdown	-0.53	0.48	-1.01
Martin ratio: Return relative to average drawdown	-0.83	1.01	-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.

SOUNW vs. CRNC - Sharpe Ratio Comparison

The current SOUNW Sharpe Ratio is -0.37, which is lower than the CRNC Sharpe Ratio of 0.31. The chart below compares the historical Sharpe Ratios of SOUNW and CRNC, 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

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

Drawdowns

SOUNW vs. CRNC - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

SOUNW vs. CRNC - Volatility Comparison

SoundHound AI Inc. (SOUNW) has a higher volatility of 25.43% compared to Cerence Inc. (CRNC) at 22.33%. This indicates that SOUNW's price experiences larger fluctuations and is considered to be riskier than CRNC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

Dividends

SOUNW vs. CRNC - Dividend Comparison

Neither SOUNW nor CRNC has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

Frequently Asked Questions

Can I hold both SOUNW and CRNC in my portfolio?

SOUNW and CRNC 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, SOUNW or CRNC?

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

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.