^OEX vs. MSFT

Last updated Jun 4, 2026

^OEX (S&P 100 Index) is an index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, ^OEX returned 14.98%/yr vs 25.03%/yr for MSFT. A 0.63 correlation means they provide meaningful diversification when combined.

Performance

^OEX vs. MSFT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in S&P 100 Index (^OEX) and Microsoft Corporation (MSFT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ^OEX achieves a 9.08% return, which is significantly higher than MSFT's -11.24% return. Over the past 10 years, ^OEX has underperformed MSFT with an annualized return of 14.98%, while MSFT has yielded a comparatively higher 25.03% annualized return.

^OEX

• 1D: -0.93%
• 1M: 5.31%
• YTD: 9.08%
• 6M: 8.87%
• 1Y: 28.44%
• 3Y*: 23.22%
• 5Y*: 14.34%
• 10Y*: 14.98%

MSFT

• 1D: -3.17%
• 1M: 3.54%
• YTD: -11.24%
• 6M: -10.15%
• 1Y: -6.96%
• 3Y*: 9.26%
• 5Y*: 12.17%
• 10Y*: 25.03%

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

^OEX vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
^OEX S&P 100 Index	9.08%	18.76%	29.25%	30.83%	-22.12%	27.55%	19.30%	29.47%	-5.86%	19.34%
MSFT Microsoft Corporation	-11.24%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%

Correlation

The correlation between ^OEX and MSFT is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Mar 14, 1986	0.63

The correlation between ^OEX and MSFT shifts across timeframes, from 0.52 (1 year) to 0.77 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

^OEX vs. MSFT — Risk / Return Rank

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

^OEX

^OEX Risk / Return Rank: 69
^OEX Sharpe Ratio Rank: 72
^OEX Sortino Ratio Rank: 72
^OEX Omega Ratio Rank: 72
^OEX Calmar Ratio Rank: 58
^OEX Martin Ratio Rank: 70

MSFT

MSFT Risk / Return Rank: 29
MSFT Sharpe Ratio Rank: 29
MSFT Sortino Ratio Rank: 25
MSFT Omega Ratio Rank: 25
MSFT Calmar Ratio Rank: 33
MSFT Martin Ratio Rank: 33

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.

^OEX vs. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for S&P 100 Index (^OEX) 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.

	^OEX	MSFT	Difference
Sharpe ratio: Return per unit of total volatility	2.25	-0.28	+2.53
Sortino ratio: Return per unit of downside risk	3.08	-0.21	+3.29
Omega ratio: Gain probability vs. loss probability	1.40	0.97	+0.43
Calmar ratio: Return relative to maximum drawdown	2.53	-0.21	+2.73
Martin ratio: Return relative to average drawdown	10.55	-0.44	+10.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

^OEX vs. MSFT - Sharpe Ratio Comparison

The current ^OEX Sharpe Ratio is 2.25, which is higher than the MSFT Sharpe Ratio of -0.28. The chart below compares the historical Sharpe Ratios of ^OEX 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

	^OEX	MSFT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.25	-0.28	+2.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.46	+0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.93	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.75	-0.23

Drawdowns

^OEX vs. MSFT - Drawdown Comparison

The maximum ^OEX drawdown since its inception was -61.31%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for ^OEX and MSFT.

Drawdown Indicators

	^OEX	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-61.31%	-69.38%	+8.07%
Max Drawdown (1Y) Largest decline over 1 year	-11.30%	-33.91%	+22.61%
Max Drawdown (3Y) Largest decline over 3 years	-19.89%	-33.91%	+14.02%
Max Drawdown (5Y) Largest decline over 5 years	-27.23%	-37.15%	+9.92%
Max Drawdown (10Y) Largest decline over 10 years	-31.53%	-37.15%	+5.62%
Current Drawdown Current decline from peak	-1.02%	-20.67%	+19.65%
Average Drawdown Average peak-to-trough decline	-12.82%	-21.78%	+8.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.70%	15.95%	-13.25%

Volatility

^OEX vs. MSFT - Volatility Comparison

The current volatility for S&P 100 Index (^OEX) is 3.29%, while Microsoft Corporation (MSFT) has a volatility of 9.95%. This indicates that ^OEX 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

	^OEX	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.29%	9.95%	-6.66%
Volatility (6M) Calculated over the trailing 6-month period	9.52%	22.34%	-12.82%
Volatility (1Y) Calculated over the trailing 1-year period	12.68%	25.12%	-12.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.76%	26.63%	-8.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.47%	27.04%	-8.57%

Frequently Asked Questions

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

^OEX and MSFT have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ^OEX or MSFT?

MSFT has higher volatility (9.95%) compared to ^OEX (3.29%). In terms of maximum drawdown, ^OEX dropped -61.31% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

^OEX currently has the higher Sharpe Ratio (2.25 vs -0.28), 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.