MSFT vs. ^GSPC
MSFT (Microsoft Corporation) is a stock, while ^GSPC (S&P 500 Index) is an index. Over the past 10 years, MSFT returned 23.18%/yr vs 13.09%/yr for ^GSPC. A 0.61 correlation means they provide meaningful diversification when combined.
Performance
MSFT vs. ^GSPC - Performance Comparison
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Returns By Period
In the year-to-date period, MSFT achieves a -16.45% return, which is significantly lower than ^GSPC's 8.73% return. Over the past 10 years, MSFT has outperformed ^GSPC with an annualized return of 23.18%, while ^GSPC has yielded a comparatively lower 13.09% annualized return.
MSFT
- 1D
- 2.15%
- 1M
- 6.03%
- 6M
- -12.13%
- YTD
- -16.45%
- 1Y
- -20.50%
- 3Y*
- 6.20%
- 5Y*
- 8.30%
- 10Y*
- 23.18%
- ALL TIME*
- 24.73%
^GSPC
- 1D
- -0.19%
- 1M
- -0.76%
- 6M
- 7.25%
- YTD
- 8.73%
- 1Y
- 18.21%
- 3Y*
- 17.95%
- 5Y*
- 11.30%
- 10Y*
- 13.09%
- ALL TIME*
- 8.08%
MSFT vs. ^GSPC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | -16.45% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
^GSPC S&P 500 Index | 8.73% | 16.39% | 23.31% | 24.23% | -19.44% | 26.89% | 16.26% | 28.88% | -6.24% | 19.42% |
Correlation
The correlation between MSFT and ^GSPC is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.41 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.60 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.72 |
Correlation (All Time) Calculated using the full available price history since Mar 13, 1986 | 0.61 |
Over the past year, the correlation between MSFT and ^GSPC has dropped to 0.41 - well below their long-term average of 0.61, suggesting their price drivers have been diverging.
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Return for Risk
MSFT vs. ^GSPC — Risk / Return Rank
MSFT
^GSPC
MSFT vs. ^GSPC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) and S&P 500 Index (^GSPC). 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.
| MSFT | ^GSPC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.20 | ||
| Sortino ratioReturn per unit of downside risk | -2.95 | ||
| Omega ratioGain probability vs. loss probability | 0.88 | 1.26 | -0.38 |
| Calmar ratioReturn relative to maximum drawdown | -0.60 | 2.01 | -2.61 |
| Martin ratioReturn relative to average drawdown | -1.10 | 8.68 | -9.78 |
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Drawdowns
MSFT vs. ^GSPC - Drawdown Comparison
The maximum MSFT drawdown since its inception was -69.38%, which is greater than ^GSPC's maximum drawdown of -56.78%. Use the drawdown chart below to compare losses from any high point for MSFT and ^GSPC.
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Drawdown Indicators
| MSFT | ^GSPC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.38% | -56.78% | -12.60% |
Max Drawdown (1Y)Largest decline over 1 year | -34.50% | -9.10% | -25.40% |
Max Drawdown (3Y)Largest decline over 3 years | -34.50% | -18.90% | -15.60% |
Max Drawdown (5Y)Largest decline over 5 years | -37.15% | -25.43% | -11.72% |
Max Drawdown (10Y)Largest decline over 10 years | -37.15% | -33.92% | -3.23% |
Current DrawdownCurrent decline from peak | -25.32% | -2.19% | -23.13% |
Average DrawdownAverage peak-to-trough decline | -21.80% | -10.70% | -11.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 18.74% | 2.10% | +16.64% |
Volatility
MSFT vs. ^GSPC - Volatility Comparison
Microsoft Corporation (MSFT) has a higher volatility of 10.25% compared to S&P 500 Index (^GSPC) at 3.13%. This indicates that MSFT's price experiences larger fluctuations and is considered to be riskier than ^GSPC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MSFT | ^GSPC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.25% | 3.13% | +7.12% |
Volatility (6M)Calculated over the trailing 6-month period | 24.51% | 10.04% | +14.47% |
Volatility (1Y)Calculated over the trailing 1-year period | 27.52% | 12.62% | +14.90% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 27.07% | 16.98% | +10.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.15% | 18.06% | +9.09% |
Frequently Asked Questions
MSFT and ^GSPC have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.25%) compared to ^GSPC (3.13%). In terms of maximum drawdown, MSFT dropped -69.38% vs ^GSPC's -56.78%.
^GSPC currently has the higher Sharpe Ratio (1.45 vs -0.75), 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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