MSFT vs. ERX

Last updated Jun 5, 2026

MSFT (Microsoft Corporation) is a stock, while ERX (Direxion Daily Energy Bull 2X Shares) is Leveraged Equities fund tracking the Energy Select Sector Index (300%). Over the past 10 years, MSFT returned 24.97%/yr vs -9.37%/yr for ERX. At a 0.33 correlation, their price movements are largely independent.

Performance

MSFT vs. ERX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Microsoft Corporation (MSFT) and Direxion Daily Energy Bull 2X Shares (ERX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSFT achieves a -11.10% return, which is significantly lower than ERX's 66.84% return. Over the past 10 years, MSFT has outperformed ERX with an annualized return of 24.97%, while ERX has yielded a comparatively lower -9.37% annualized return.

MSFT

• 1D: 0.17%
• 1M: 4.28%
• YTD: -11.10%
• 6M: -10.58%
• 1Y: -6.98%
• 3Y*: 9.26%
• 5Y*: 12.20%
• 10Y*: 24.97%

ERX

• 1D: -0.05%
• 1M: -3.57%
• YTD: 66.84%
• 6M: 58.30%
• 1Y: 98.14%
• 3Y*: 24.19%
• 5Y*: 28.74%
• 10Y*: -9.37%

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

MSFT vs. ERX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MSFT Microsoft Corporation	-11.10%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%
ERX Direxion Daily Energy Bull 2X Shares	66.84%	2.79%	1.09%	-12.26%	130.58%	111.91%	-91.60%	17.13%	-55.94%	-11.60%

Correlation

The correlation between MSFT and ERX is -0.12, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.12
Correlation (3Y) Calculated over the trailing 3-year period	-0.04
Correlation (5Y) Calculated over the trailing 5-year period	0.08
Correlation (10Y) Calculated over the trailing 10-year period	0.19
Correlation (All Time) Calculated using the full available price history since Nov 20, 2008	0.33

The correlation between MSFT and ERX shifts across timeframes, from -0.12 (1 year) to 0.33 (all time), reflecting how their relationship changes across market environments.

Return for Risk

MSFT vs. ERX — Risk / Return Rank

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

MSFT

MSFT Risk / Return Rank: 30
MSFT Sharpe Ratio Rank: 30
MSFT Sortino Ratio Rank: 26
MSFT Omega Ratio Rank: 26
MSFT Calmar Ratio Rank: 35
MSFT Martin Ratio Rank: 34

ERX

ERX Risk / Return Rank: 68
ERX Sharpe Ratio Rank: 76
ERX Sortino Ratio Rank: 60
ERX Omega Ratio Rank: 58
ERX Calmar Ratio Rank: 82
ERX Martin Ratio Rank: 64

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.

MSFT vs. ERX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) and Direxion Daily Energy Bull 2X Shares (ERX). 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.

	MSFT	ERX	Difference
Sharpe ratio: Return per unit of total volatility	-0.28	2.42	-2.69
Sortino ratio: Return per unit of downside risk	-0.22	2.79	-3.00
Omega ratio: Gain probability vs. loss probability	0.97	1.35	-0.38
Calmar ratio: Return relative to maximum drawdown	-0.21	4.23	-4.44
Martin ratio: Return relative to average drawdown	-0.44	11.45	-11.88
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSFT vs. ERX - Sharpe Ratio Comparison

The current MSFT Sharpe Ratio is -0.28, which is lower than the ERX Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of MSFT and ERX, 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

	MSFT	ERX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.28	2.42	-2.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.46	0.56	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.93	-0.14	+1.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.75	-0.09	+0.83

Drawdowns

MSFT vs. ERX - Drawdown Comparison

The maximum MSFT drawdown since its inception was -69.38%, smaller than the maximum ERX drawdown of -99.54%. Use the drawdown chart below to compare losses from any high point for MSFT and ERX.

Drawdown Indicators

	MSFT	ERX	Difference
Max Drawdown Largest peak-to-trough decline	-69.38%	-99.54%	+30.16%
Max Drawdown (1Y) Largest decline over 1 year	-33.91%	-23.34%	-10.57%
Max Drawdown (3Y) Largest decline over 3 years	-33.91%	-42.34%	+8.43%
Max Drawdown (5Y) Largest decline over 5 years	-37.15%	-46.90%	+9.75%
Max Drawdown (10Y) Largest decline over 10 years	-37.15%	-98.59%	+61.44%
Current Drawdown Current decline from peak	-20.53%	-91.58%	+71.05%
Average Drawdown Average peak-to-trough decline	-21.78%	-67.03%	+45.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.00%	8.60%	+7.40%

Volatility

MSFT vs. ERX - Volatility Comparison

The current volatility for Microsoft Corporation (MSFT) is 9.93%, while Direxion Daily Energy Bull 2X Shares (ERX) has a volatility of 16.49%. This indicates that MSFT experiences smaller price fluctuations and is considered to be less risky than ERX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFT	ERX	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.93%	16.49%	-6.56%
Volatility (6M) Calculated over the trailing 6-month period	22.32%	33.31%	-10.99%
Volatility (1Y) Calculated over the trailing 1-year period	25.12%	41.08%	-15.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.61%	51.98%	-25.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.03%	69.16%	-42.13%

Dividends

MSFT vs. ERX - Dividend Comparison

MSFT's dividend yield for the trailing twelve months is around 0.83%, less than ERX's 1.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ERX Direxion Daily Energy Bull 2X Shares	1.61%	2.54%	2.94%	3.17%	2.23%	2.16%	2.35%	1.56%	3.10%	0.85%	0.00%	0.00%
MSFT Microsoft Corporation	0.83%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%

Frequently Asked Questions

Can I hold both MSFT and ERX in my portfolio?

MSFT and ERX have a correlation of -0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSFT or ERX?

ERX has higher volatility (16.49%) compared to MSFT (9.93%). In terms of maximum drawdown, MSFT dropped -69.38% vs ERX's -99.54%.

Which has better risk-adjusted returns?

ERX currently has the higher Sharpe Ratio (2.42 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.