MSFT vs. SHOP
MSFT (Microsoft Corporation) and SHOP (Shopify Inc.) are both stocks. Both are in the Technology sector — MSFT in Software - Infrastructure, SHOP in Software - Application. Over the past 10 years, MSFT returned 25.03%/yr vs 43.94%/yr for SHOP. At a 0.48 correlation, their price movements are largely independent.
Performance
MSFT vs. SHOP - Performance Comparison
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Returns By Period
In the year-to-date period, MSFT achieves a -11.24% return, which is significantly higher than SHOP's -29.84% return. Over the past 10 years, MSFT has underperformed SHOP with an annualized return of 25.03%, while SHOP has yielded a comparatively higher 43.94% annualized return.
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%
SHOP
- 1D
- -3.48%
- 1M
- -11.45%
- YTD
- -29.84%
- 6M
- -29.41%
- 1Y
- 7.45%
- 3Y*
- 24.67%
- 5Y*
- -1.30%
- 10Y*
- 43.94%
MSFT vs. SHOP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | -11.24% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
SHOP Shopify Inc. | -29.84% | 51.39% | 36.50% | 124.43% | -74.80% | 21.68% | 184.71% | 187.17% | 37.08% | 135.60% |
Correlation
The correlation between MSFT and SHOP is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.46 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.47 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.52 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since May 22, 2015 | 0.48 |
The correlation between MSFT and SHOP has been stable across timeframes, ranging from 0.46 to 0.52 - a consistent structural relationship.
Fundamentals
MSFT:
$3.18T
SHOP:
$147.20B
MSFT:
$16.79
SHOP:
$1.02
MSFT:
25.45
SHOP:
110.87
MSFT:
1.78
SHOP:
0.21
MSFT:
10.01
SHOP:
16.06
MSFT:
7.68
SHOP:
11.78
MSFT:
$318.27B
SHOP:
$9.20B
MSFT:
$217.41B
SHOP:
$5.93B
MSFT:
$200.96B
SHOP:
$1.60B
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Return for Risk
MSFT vs. SHOP — Risk / Return Rank
MSFT
SHOP
MSFT vs. SHOP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) and Shopify Inc. (SHOP). 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 | SHOP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.41 | ||
| Sortino ratioReturn per unit of downside risk | -0.82 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.07 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | -0.21 | 0.16 | -0.37 |
| Martin ratioReturn relative to average drawdown | -0.44 | 0.35 | -0.79 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| MSFT | SHOP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.28 | 0.13 | -0.41 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.46 | -0.02 | +0.48 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.93 | 0.75 | +0.18 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.75 | 0.69 | +0.05 |
Drawdowns
MSFT vs. SHOP - Drawdown Comparison
The maximum MSFT drawdown since its inception was -69.38%, smaller than the maximum SHOP drawdown of -84.82%. Use the drawdown chart below to compare losses from any high point for MSFT and SHOP.
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Drawdown Indicators
| MSFT | SHOP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.38% | -84.82% | +15.44% |
Max Drawdown (1Y)Largest decline over 1 year | -33.91% | -46.71% | +12.80% |
Max Drawdown (3Y)Largest decline over 3 years | -33.91% | -46.71% | +12.80% |
Max Drawdown (5Y)Largest decline over 5 years | -37.15% | -84.82% | +47.67% |
Max Drawdown (10Y)Largest decline over 10 years | -37.15% | -84.82% | +47.67% |
Current DrawdownCurrent decline from peak | -20.67% | -36.91% | +16.24% |
Average DrawdownAverage peak-to-trough decline | -21.78% | -28.21% | +6.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 15.95% | 21.36% | -5.41% |
Volatility
MSFT vs. SHOP - Volatility Comparison
The current volatility for Microsoft Corporation (MSFT) is 9.95%, while Shopify Inc. (SHOP) has a volatility of 24.71%. This indicates that MSFT experiences smaller price fluctuations and is considered to be less risky than SHOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MSFT | SHOP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.95% | 24.71% | -14.76% |
Volatility (6M)Calculated over the trailing 6-month period | 22.34% | 43.60% | -21.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.12% | 57.17% | -32.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.63% | 65.51% | -38.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.04% | 59.05% | -32.01% |
Dividends
MSFT vs. SHOP - Dividend Comparison
MSFT's dividend yield for the trailing twelve months is around 0.83%, while SHOP has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
SHOP Shopify Inc. | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Financials
MSFT vs. SHOP - Financials Comparison
This section allows you to compare key financial metrics between Microsoft Corporation and Shopify Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
Frequently Asked Questions
MSFT and SHOP have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SHOP has higher volatility (24.71%) compared to MSFT (9.95%). In terms of maximum drawdown, MSFT dropped -69.38% vs SHOP's -84.82%.
SHOP currently has the higher Sharpe Ratio (0.13 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.
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