^GSPC vs. MSFT

Last updated Jun 9, 2026

^GSPC (S&P 500 Index) is an index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, ^GSPC returned 13.45%/yr vs 24.64%/yr for MSFT. A 0.61 correlation means they provide meaningful diversification when combined.

Performance

^GSPC vs. MSFT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in S&P 500 Index (^GSPC) and Microsoft Corporation (MSFT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ^GSPC achieves a 8.18% return, which is significantly higher than MSFT's -14.48% return. Over the past 10 years, ^GSPC has underperformed MSFT with an annualized return of 13.45%, while MSFT has yielded a comparatively higher 24.64% annualized return.

^GSPC

• 1D: 0.30%
• 1M: 0.09%
• YTD: 8.18%
• 6M: 8.17%
• 1Y: 23.42%
• 3Y*: 19.88%
• 5Y*: 11.91%
• 10Y*: 13.45%

MSFT

• 1D: -1.18%
• 1M: -0.60%
• YTD: -14.48%
• 6M: -15.77%
• 1Y: -11.77%
• 3Y*: 8.85%
• 5Y*: 11.09%
• 10Y*: 24.64%

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

^GSPC vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
^GSPC S&P 500 Index	8.18%	16.39%	23.31%	24.23%	-19.44%	26.89%	16.26%	28.88%	-6.24%	19.42%
MSFT Microsoft Corporation	-14.48%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%

Correlation

The correlation between ^GSPC and MSFT is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Mar 14, 1986	0.62

The correlation between ^GSPC and MSFT shifts across timeframes, from 0.47 (1 year) to 0.73 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

^GSPC vs. MSFT — Risk / Return Rank

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

^GSPC

^GSPC Risk / Return Rank: 68
^GSPC Sharpe Ratio Rank: 63
^GSPC Sortino Ratio Rank: 65
^GSPC Omega Ratio Rank: 71
^GSPC Calmar Ratio Rank: 65
^GSPC Martin Ratio Rank: 79

MSFT

MSFT Risk / Return Rank: 24
MSFT Sharpe Ratio Rank: 21
MSFT Sortino Ratio Rank: 21
MSFT Omega Ratio Rank: 20
MSFT Calmar Ratio Rank: 31
MSFT Martin Ratio Rank: 28

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.

^GSPC vs. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for S&P 500 Index (^GSPC) and Microsoft Corporation (MSFT). 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.

	^GSPC	MSFT	Difference
Sharpe ratio: Return per unit of total volatility	1.94	-0.47	+2.40
Sortino ratio: Return per unit of downside risk	2.63	-0.49	+3.11
Omega ratio: Gain probability vs. loss probability	1.35	0.94	+0.42
Calmar ratio: Return relative to maximum drawdown	2.59	-0.35	+2.93
Martin ratio: Return relative to average drawdown	11.84	-0.73	+12.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

^GSPC vs. MSFT - Sharpe Ratio Comparison

The current ^GSPC Sharpe Ratio is 1.94, which is higher than the MSFT Sharpe Ratio of -0.47. The chart below compares the historical Sharpe Ratios of ^GSPC and MSFT, 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

	^GSPC	MSFT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.94	-0.47	+2.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.42	+0.29
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	0.91	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.47	0.74	-0.27

Drawdowns

^GSPC vs. MSFT - Drawdown Comparison

The maximum ^GSPC drawdown since its inception was -56.78%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for ^GSPC and MSFT.

Drawdown Indicators

	^GSPC	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-56.78%	-69.38%	+12.60%
Max Drawdown (1Y) Largest decline over 1 year	-9.10%	-33.91%	+24.81%
Max Drawdown (3Y) Largest decline over 3 years	-18.90%	-33.91%	+15.01%
Max Drawdown (5Y) Largest decline over 5 years	-25.43%	-37.15%	+11.72%
Max Drawdown (10Y) Largest decline over 10 years	-33.92%	-37.15%	+3.23%
Current Drawdown Current decline from peak	-2.68%	-23.56%	+20.88%
Average Drawdown Average peak-to-trough decline	-10.72%	-21.78%	+11.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	16.13%	-14.15%

Volatility

^GSPC vs. MSFT - Volatility Comparison

The current volatility for S&P 500 Index (^GSPC) is 3.80%, while Microsoft Corporation (MSFT) has a volatility of 10.25%. This indicates that ^GSPC experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	^GSPC	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.80%	10.25%	-6.45%
Volatility (6M) Calculated over the trailing 6-month period	9.41%	22.36%	-12.95%
Volatility (1Y) Calculated over the trailing 1-year period	12.17%	25.31%	-13.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.94%	26.64%	-9.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.09%	27.06%	-8.97%

Frequently Asked Questions

Can I hold both ^GSPC and MSFT in my portfolio?

^GSPC and MSFT have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ^GSPC or MSFT?

MSFT has higher volatility (10.25%) compared to ^GSPC (3.80%). In terms of maximum drawdown, ^GSPC dropped -56.78% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

^GSPC currently has the higher Sharpe Ratio (1.94 vs -0.47), 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.