SOXL vs. CDNS

Last updated Jun 9, 2026

SOXL (Direxion Daily Semiconductor Bull 3X ETF) is Leveraged Equities fund tracking the ICE Semiconductor Index, while CDNS (Cadence Design Systems, Inc.) is a stock. Over the past 10 years, SOXL returned 61.24%/yr vs 31.92%/yr for CDNS. A 0.66 correlation means they provide meaningful diversification when combined.

Performance

SOXL vs. CDNS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Semiconductor Bull 3X ETF (SOXL) and Cadence Design Systems, Inc. (CDNS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SOXL achieves a 403.07% return, which is significantly higher than CDNS's 26.12% return. Over the past 10 years, SOXL has outperformed CDNS with an annualized return of 61.24%, while CDNS has yielded a comparatively lower 31.92% annualized return.

SOXL

• 1D: 15.83%
• 1M: 19.50%
• YTD: 403.07%
• 6M: 340.59%
• 1Y: 1,006.21%
• 3Y*: 112.77%
• 5Y*: 42.03%
• 10Y*: 61.24%

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%

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

SOXL vs. CDNS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SOXL Direxion Daily Semiconductor Bull 3X ETF	403.07%	54.91%	-12.31%	226.98%	-85.66%	118.84%	70.04%	231.83%	-39.07%	141.71%
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 SOXL and CDNS is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Mar 11, 2010	0.66

The correlation between SOXL and CDNS shifts across timeframes, from 0.48 (1 year) to 0.68 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

SOXL vs. CDNS — Risk / Return Rank

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

SOXL

SOXL Risk / Return Rank: 97
SOXL Sharpe Ratio Rank: 99
SOXL Sortino Ratio Rank: 93
SOXL Omega Ratio Rank: 94
SOXL Calmar Ratio Rank: 99
SOXL Martin Ratio Rank: 98

CDNS

CDNS Risk / Return Rank: 65
CDNS Sharpe Ratio Rank: 69
CDNS Sortino Ratio Rank: 65
CDNS Omega Ratio Rank: 64
CDNS Calmar Ratio Rank: 65
CDNS Martin Ratio Rank: 64

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.

SOXL vs. CDNS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Semiconductor Bull 3X ETF (SOXL) 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.

	SOXL	CDNS	Difference
Sharpe ratio: Return per unit of total volatility	9.42	0.85	+8.58
Sortino ratio: Return per unit of downside risk	4.27	1.42	+2.85
Omega ratio: Gain probability vs. loss probability	1.61	1.18	+0.43
Calmar ratio: Return relative to maximum drawdown	23.39	1.14	+22.25
Martin ratio: Return relative to average drawdown	78.42	2.42	+76.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SOXL vs. CDNS - Sharpe Ratio Comparison

The current SOXL Sharpe Ratio is 9.42, which is higher than the CDNS Sharpe Ratio of 0.85. The chart below compares the historical Sharpe Ratios of SOXL and CDNS, 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

	SOXL	CDNS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	9.42	0.85	+8.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.39	0.72	-0.33
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.62	0.94	-0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.24	+0.24

Drawdowns

SOXL vs. CDNS - Drawdown Comparison

The maximum SOXL drawdown since its inception was -90.46%, roughly equal to the maximum CDNS drawdown of -93.13%. Use the drawdown chart below to compare losses from any high point for SOXL and CDNS.

Drawdown Indicators

	SOXL	CDNS	Difference
Max Drawdown Largest peak-to-trough decline	-90.46%	-93.13%	+2.67%
Max Drawdown (1Y) Largest decline over 1 year	-43.47%	-28.85%	-14.62%
Max Drawdown (3Y) Largest decline over 3 years	-87.88%	-29.05%	-58.83%
Max Drawdown (5Y) Largest decline over 5 years	-90.46%	-29.59%	-60.87%
Max Drawdown (10Y) Largest decline over 10 years	-90.46%	-32.12%	-58.34%
Current Drawdown Current decline from peak	-24.63%	-5.32%	-19.31%
Average Drawdown Average peak-to-trough decline	-35.01%	-39.64%	+4.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.94%	13.60%	-0.66%

Volatility

SOXL vs. CDNS - Volatility Comparison

Direxion Daily Semiconductor Bull 3X ETF (SOXL) has a higher volatility of 56.07% compared to Cadence Design Systems, Inc. (CDNS) at 16.58%. This indicates that SOXL'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.

Volatility by Period

	SOXL	CDNS	Difference
Volatility (1M) Calculated over the trailing 1-month period	56.07%	16.58%	+39.49%
Volatility (6M) Calculated over the trailing 6-month period	90.69%	31.69%	+59.00%
Volatility (1Y) Calculated over the trailing 1-year period	108.13%	39.02%	+69.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	108.35%	36.20%	+72.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	99.68%	34.13%	+65.55%

Dividends

SOXL vs. CDNS - Dividend Comparison

SOXL's dividend yield for the trailing twelve months is around 0.04%, while CDNS has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
CDNS Cadence Design Systems, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SOXL Direxion Daily Semiconductor Bull 3X ETF	0.04%	0.34%	1.18%	0.51%	1.07%	0.04%	0.05%	0.38%	1.30%	0.09%	4.84%

Frequently Asked Questions

Can I hold both SOXL and CDNS in my portfolio?

SOXL and CDNS have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SOXL or CDNS?

SOXL has higher volatility (56.07%) compared to CDNS (16.58%). In terms of maximum drawdown, SOXL dropped -90.46% vs CDNS's -93.13%.

Which has better risk-adjusted returns?

SOXL currently has the higher Sharpe Ratio (9.42 vs 0.85), 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.