Microsoft Correlations

MSFT Stock

USD 423.46 0.47 0.11%

The current 90-days correlation between Microsoft and Palo Alto Networks is 0.35 (i.e., Weak diversification). The correlation of Microsoft is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Microsoft Correlation With Market

Very weak diversification

The correlation between Microsoft and DJI is 0.43 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microsoft. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census.

For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.

Moving against Microsoft Stock

0.45

VHAI

Pair Corr

Related Correlations Analysis

	PANW	PATH	SQ	ADBE	CRWD	PLTR	ORCL	NET	OKTA
PANW		0.67	0.86	-0.29	0.87	0.86	0.71	0.87	0.26	PANW
PATH	0.67		0.73	-0.08	0.74	0.7	0.53	0.78	0.37	PATH
SQ	0.86	0.73		-0.36	0.94	0.95	0.8	0.89	0.12	SQ
ADBE	-0.29	-0.08	-0.36		-0.51	-0.4	-0.67	-0.46	0.25	ADBE
CRWD	0.87	0.74	0.94	-0.51		0.94	0.88	0.94	0.15	CRWD
PLTR	0.86	0.7	0.95	-0.4	0.94		0.86	0.87	0.08	PLTR
ORCL	0.71	0.53	0.8	-0.67	0.88	0.86		0.81	-0.08	ORCL
NET	0.87	0.78	0.89	-0.46	0.94	0.87	0.81		0.19	NET
OKTA	0.26	0.37	0.12	0.25	0.15	0.08	-0.08	0.19		OKTA
	PANW	PATH	SQ	ADBE	CRWD	PLTR	ORCL	NET	OKTA

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

PLTR	+ 0.95	SQ
CRWD	+ 0.94	SQ
PLTR	+ 0.94	CRWD
NET	+ 0.94	CRWD
NET	+ 0.89	SQ
ORCL	+ 0.88	CRWD

High negative correlations

ORCL	- 0.67	ADBE
CRWD	- 0.51	ADBE
NET	- 0.46	ADBE
PLTR	- 0.4	ADBE
ADBE	- 0.36	SQ
ADBE	- 0.29	PANW

Risk-Adjusted Indicators

There is a big difference between Microsoft Stock performing well and Microsoft Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Microsoft's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
PANW	1.40	0.00	0.02	0.13	1.89	(1.39)	2.45	(3.03)	9.85
PATH	1.89	(0.06)	0.03	0.10	2.49	(1.95)	4.52	(3.82)	12.04
SQ	1.91	0.31	0.19	0.34	1.50	(2.18)	4.62	(2.94)	14.80
ADBE	1.35	(0.22)	0.00	(0.14)	0.00	0.00	2.87	(2.89)	10.09
CRWD	2.01	0.22	0.14	0.27	1.88	(2.26)	4.04	(3.44)	12.69
PLTR	2.53	0.98	0.48	0.55	1.42	(2.97)	8.61	(2.80)	30.33
ORCL	1.36	0.32	0.21	0.43	1.15	(1.54)	2.83	(1.90)	15.46
NET	2.01	0.15	0.11	0.21	1.83	(2.36)	5.47	(3.44)	13.45
OKTA	1.48	(0.41)	0.00	(0.34)	0.00	0.00	2.39	(3.42)	17.64

Microsoft Corporate Management

Hossein Nowbar	Chief Officer	Profile
Brett Iversen	Vice Relations	Profile
Christopher Young	Strategy Development	Profile
Takeshi Numoto	Executive Officer	Profile
Keith Esq	Deputy VP	Profile

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