MSFT vs. NATO
MSFT (Microsoft Corporation) is a stock, while NATO (Themes Transatlantic Defense ETF) is Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index. Over the past year, MSFT returned -17.07% vs 17.50% for NATO. At a 0.27 correlation, their price movements are largely independent.
Performance
MSFT vs. NATO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, MSFT achieves a -18.85% return, which is significantly lower than NATO's 4.09% return.
MSFT
- 1D
- 0.10%
- 1M
- -7.19%
- YTD
- -18.85%
- 6M
- -17.98%
- 1Y
- -17.07%
- 3Y*
- 6.16%
- 5Y*
- 9.56%
- 10Y*
- 24.39%
NATO
- 1D
- -0.90%
- 1M
- 5.95%
- YTD
- 4.09%
- 6M
- 7.29%
- 1Y
- 17.50%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
MSFT vs. NATO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
MSFT Microsoft Corporation | -18.85% | 15.58% | 1.56% |
NATO Themes Transatlantic Defense ETF | 4.09% | 50.95% | 0.51% |
Correlation
The correlation between MSFT and NATO is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (All Time) Calculated using the full available price history since Oct 11, 2024 | 0.27 |
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
MSFT vs. NATO — Risk / Return Rank
MSFT
NATO
MSFT vs. NATO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) and Themes Transatlantic Defense ETF (NATO). 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 | NATO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.55 | ||
| Sortino ratioReturn per unit of downside risk | -2.19 | ||
| Omega ratioGain probability vs. loss probability | 0.89 | 1.16 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | -0.53 | 1.13 | -1.66 |
| Martin ratioReturn relative to average drawdown | -1.08 | 2.81 | -3.89 |
Loading charts...
Drawdowns
MSFT vs. NATO - Drawdown Comparison
The maximum MSFT drawdown since its inception was -69.38%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for MSFT and NATO.
Loading charts...
Drawdown Indicators
| MSFT | NATO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.38% | -15.99% | -53.39% |
Max Drawdown (1Y)Largest decline over 1 year | -33.91% | -15.99% | -17.92% |
Max Drawdown (3Y)Largest decline over 3 years | -33.91% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -37.15% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -37.15% | — | — |
Current DrawdownCurrent decline from peak | -27.46% | -9.97% | -17.49% |
Average DrawdownAverage peak-to-trough decline | -21.78% | -3.83% | -17.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.48% | 6.44% | +10.04% |
Volatility
MSFT vs. NATO - Volatility Comparison
Microsoft Corporation (MSFT) has a higher volatility of 10.52% compared to Themes Transatlantic Defense ETF (NATO) at 8.57%. This indicates that MSFT's price experiences larger fluctuations and is considered to be riskier than NATO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| MSFT | NATO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.52% | 8.57% | +1.95% |
Volatility (6M)Calculated over the trailing 6-month period | 22.31% | 18.32% | +3.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.42% | 21.36% | +4.06% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.66% | 22.81% | +3.85% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.06% | 22.81% | +4.25% |
Dividends
MSFT vs. NATO - Dividend Comparison
MSFT's dividend yield for the trailing twelve months is around 0.91%, more than NATO's 0.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | 0.91% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
NATO Themes Transatlantic Defense ETF | 0.43% | 0.45% | 0.08% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
MSFT and NATO have a correlation of 0.23, 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 NATO (8.57%). In terms of maximum drawdown, MSFT dropped -69.38% vs NATO's -15.99%.
NATO currently has the higher Sharpe Ratio (0.85 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.
Find the right allocation for MSFT and NATO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer