^NDXT vs. MSFT
^NDXT (NASDAQ 100 Technology Sector Index) is an index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, ^NDXT returned 20.90%/yr vs 23.73%/yr for MSFT. A 0.67 correlation means they provide meaningful diversification when combined.
Performance
^NDXT vs. MSFT - Performance Comparison
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Returns By Period
In the year-to-date period, ^NDXT achieves a 32.14% return, which is significantly higher than MSFT's -16.69% return. Over the past 10 years, ^NDXT has underperformed MSFT with an annualized return of 20.90%, while MSFT has yielded a comparatively higher 23.73% annualized return.
^NDXT
- 1D
- -2.76%
- 1M
- -6.12%
- 6M
- 28.32%
- YTD
- 32.14%
- 1Y
- 41.79%
- 3Y*
- 25.33%
- 5Y*
- 14.64%
- 10Y*
- 20.90%
MSFT
- 1D
- 1.38%
- 1M
- 1.85%
- 6M
- -11.78%
- YTD
- -16.69%
- 1Y
- -20.04%
- 3Y*
- 5.90%
- 5Y*
- 8.28%
- 10Y*
- 23.73%
^NDXT vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
^NDXT NASDAQ 100 Technology Sector Index | 32.14% | 22.46% | 7.13% | 66.70% | -39.93% | 26.98% | 38.17% | 47.28% | -5.49% | 36.68% |
MSFT Microsoft Corporation | -16.69% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between ^NDXT and MSFT is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.29 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.67 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.70 |
Correlation (All Time) Calculated using the full available price history since Feb 22, 2006 | 0.67 |
Over the past year, the correlation between ^NDXT and MSFT has dropped to 0.29 - well below their long-term average of 0.67, suggesting their price drivers have been diverging.
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Return for Risk
^NDXT vs. MSFT — Risk / Return Rank
^NDXT
MSFT
^NDXT vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for NASDAQ 100 Technology Sector Index (^NDXT) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ^NDXT | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.24 | ||
| Sortino ratioReturn per unit of downside risk | +2.93 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 0.89 | +0.37 |
| Calmar ratioReturn relative to maximum drawdown | 2.61 | -0.58 | +3.19 |
| Martin ratioReturn relative to average drawdown | 7.91 | -1.08 | +8.99 |
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Drawdowns
^NDXT vs. MSFT - Drawdown Comparison
The maximum ^NDXT drawdown since its inception was -59.34%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for ^NDXT and MSFT.
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Drawdown Indicators
| ^NDXT | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.34% | -69.38% | +10.04% |
Max Drawdown (1Y)Largest decline over 1 year | -16.08% | -34.50% | +18.42% |
Max Drawdown (3Y)Largest decline over 3 years | -29.28% | -34.50% | +5.22% |
Max Drawdown (5Y)Largest decline over 5 years | -45.71% | -37.15% | -8.56% |
Max Drawdown (10Y)Largest decline over 10 years | -45.71% | -37.15% | -8.56% |
Current DrawdownCurrent decline from peak | -9.40% | -25.54% | +16.14% |
Average DrawdownAverage peak-to-trough decline | -9.85% | -21.80% | +11.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.30% | 18.60% | -13.30% |
Volatility
^NDXT vs. MSFT - Volatility Comparison
NASDAQ 100 Technology Sector Index (^NDXT) has a higher volatility of 11.41% compared to Microsoft Corporation (MSFT) at 10.80%. This indicates that ^NDXT's price experiences larger fluctuations and is considered to be riskier than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ^NDXT | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.41% | 10.80% | +0.61% |
Volatility (6M)Calculated over the trailing 6-month period | 23.69% | 24.46% | -0.77% |
Volatility (1Y)Calculated over the trailing 1-year period | 27.87% | 27.35% | +0.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.40% | 27.05% | +3.35% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.18% | 27.18% | +1.00% |
Frequently Asked Questions
^NDXT and MSFT have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
^NDXT has higher volatility (11.41%) compared to MSFT (10.80%). In terms of maximum drawdown, ^NDXT dropped -59.34% vs MSFT's -69.38%.
^NDXT currently has the higher Sharpe Ratio (1.51 vs -0.74), 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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