MSFT vs. ^NDX
MSFT (Microsoft Corporation) is a stock, while ^NDX (NASDAQ 100 Index) is an index. Over the past 10 years, MSFT returned 24.39%/yr vs 20.95%/yr for ^NDX. A 0.72 correlation means they provide meaningful diversification when combined.
Performance
MSFT vs. ^NDX - Performance Comparison
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Returns By Period
In the year-to-date period, MSFT achieves a -18.85% return, which is significantly lower than ^NDX's 17.37% return. Over the past 10 years, MSFT has outperformed ^NDX with an annualized return of 24.39%, while ^NDX has yielded a comparatively lower 20.95% annualized return.
MSFT
- 1D
- 0.10%
- 1M
- -4.36%
- YTD
- -18.85%
- 6M
- -17.98%
- 1Y
- -17.07%
- 3Y*
- 6.16%
- 5Y*
- 9.56%
- 10Y*
- 24.39%
^NDX
- 1D
- 0.64%
- 1M
- 0.19%
- YTD
- 17.37%
- 6M
- 17.62%
- 1Y
- 37.01%
- 3Y*
- 25.76%
- 5Y*
- 16.18%
- 10Y*
- 20.95%
MSFT vs. ^NDX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | -18.85% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
^NDX NASDAQ 100 Index | 17.37% | 20.17% | 24.88% | 53.81% | -32.97% | 26.63% | 47.58% | 37.96% | -1.04% | 31.52% |
Correlation
The correlation between MSFT and ^NDX is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Mar 13, 1986 | 0.72 |
Over the past year, the correlation between MSFT and ^NDX has dropped to 0.49 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.
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Return for Risk
MSFT vs. ^NDX — Risk / Return Rank
MSFT
^NDX
MSFT vs. ^NDX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) and NASDAQ 100 Index (^NDX). 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 | ^NDX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.75 | ||
| Sortino ratioReturn per unit of downside risk | -3.52 | ||
| Omega ratioGain probability vs. loss probability | 0.89 | 1.36 | -0.47 |
| Calmar ratioReturn relative to maximum drawdown | -0.53 | 2.92 | -3.45 |
| Martin ratioReturn relative to average drawdown | -1.08 | 10.85 | -11.93 |
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Drawdowns
MSFT vs. ^NDX - Drawdown Comparison
The maximum MSFT drawdown since its inception was -69.38%, smaller than the maximum ^NDX drawdown of -82.90%. Use the drawdown chart below to compare losses from any high point for MSFT and ^NDX.
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Drawdown Indicators
| MSFT | ^NDX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.38% | -82.90% | +13.52% |
Max Drawdown (1Y)Largest decline over 1 year | -33.91% | -12.12% | -21.79% |
Max Drawdown (3Y)Largest decline over 3 years | -33.91% | -22.93% | -10.98% |
Max Drawdown (5Y)Largest decline over 5 years | -37.15% | -35.56% | -1.59% |
Max Drawdown (10Y)Largest decline over 10 years | -37.15% | -35.56% | -1.59% |
Current DrawdownCurrent decline from peak | -27.46% | -3.34% | -24.12% |
Average DrawdownAverage peak-to-trough decline | -21.78% | -24.61% | +2.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.48% | 3.26% | +13.22% |
Volatility
MSFT vs. ^NDX - Volatility Comparison
Microsoft Corporation (MSFT) has a higher volatility of 10.52% compared to NASDAQ 100 Index (^NDX) at 7.51%. This indicates that MSFT's price experiences larger fluctuations and is considered to be riskier than ^NDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MSFT | ^NDX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.52% | 7.51% | +3.01% |
Volatility (6M)Calculated over the trailing 6-month period | 22.31% | 13.84% | +8.47% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.42% | 17.29% | +8.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.66% | 22.76% | +3.90% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.06% | 22.61% | +4.45% |
Frequently Asked Questions
MSFT and ^NDX have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.52%) compared to ^NDX (7.51%). In terms of maximum drawdown, MSFT dropped -69.38% vs ^NDX's -82.90%.
^NDX currently has the higher Sharpe Ratio (2.05 vs -0.70), 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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