Microsoft Correlations

MSF Stock

413.20 0.45 0.11%

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

Average diversification

The correlation between Microsoft and DJI is 0.15 (i.e., Average 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.

The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Microsoft - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Microsoft to buy it.

Moving together with Microsoft Stock

0.99	MSF	Microsoft	Pair Corr
0.98	MSF	Microsoft	Pair Corr
0.96	MSF	Microsoft	Pair Corr
0.99	MSF	Microsoft	Pair Corr

Moving against Microsoft Stock

0.85	OIXA	Orix Corp Ads	Pair Corr
0.83	OIX	ORIX	Pair Corr
0.5	LLD2	Lloyds Banking Group	Pair Corr
0.49	APC	Apple Inc	Pair Corr
0.48	SUMB	SUMITOMO P SP	Pair Corr
0.47	KBIA	KB Financial Group	Pair Corr
0.47	SID	State Bank	Pair Corr
0.46	APC	Apple Inc	Pair Corr
0.43	TKDA	Takeda Pharmaceutical	Pair Corr
0.37	APC	Apple Inc	Pair Corr
0.35	APC	Apple Inc	Pair Corr
0.8	NRI	NORTHRIM BA DL	Pair Corr
0.79	GTR	GOODYEAR T RUBBER	Pair Corr
0.67	SDA	SEALED AIR	Pair Corr
0.66	NSE	Nomura Holdings	Pair Corr
0.57	PGZ	Healius Limited	Pair Corr
0.56	DWD	Morgan Stanley	Pair Corr
0.53	4C6	Hutchison Telecommunicatio	Pair Corr
0.47	AMV0	AUMOVIO N	Pair Corr
0.45	4H7	TROPHY GAMES DEV	Pair Corr
0.39	IBE5	IBERDROLA ADR1 EO	Pair Corr
0.38	ZEGA	AstraZeneca PLC	Pair Corr
0.74	KGHA	KGHM Polska Miedz	Pair Corr
0.65	WSU	WashTec AG	Pair Corr
0.64	1QK	Aedas Homes SA	Pair Corr
0.6	4JP	Japan Post Insurance	Pair Corr

Related Correlations Analysis

	SOQ	AVK1	K20A	QUC	NWJ	MSI	S9M	BUI
SOQ		0.0	-1.0	0.0	0.0	0.0	0.0	0.0	SOQ
AVK1	0.0		0.0	-0.43	0.62	-0.65	0.35	0.19	AVK1
K20A	-1.0	0.0		0.0	0.0	0.0	0.0	0.0	K20A
QUC	0.0	-0.43	0.0		-0.39	0.32	-0.33	-0.01	QUC
NWJ	0.0	0.62	0.0	-0.39		-0.44	0.61	0.27	NWJ
MSI	0.0	-0.65	0.0	0.32	-0.44		0.04	-0.43	MSI
S9M	0.0	0.35	0.0	-0.33	0.61	0.04		0.05	S9M
BUI	0.0	0.19	0.0	-0.01	0.27	-0.43	0.05		BUI
	SOQ	AVK1	K20A	QUC	NWJ	MSI	S9M	BUI

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

NWJ	+ 0.62	AVK1
S9M	+ 0.61	NWJ
S9M	+ 0.35	AVK1
MSI	+ 0.32	QUC
BUI	+ 0.27	NWJ
BUI	+ 0.19	AVK1

High negative correlations

K20A	- 1.0	SOQ
MSI	- 0.65	AVK1
MSI	- 0.44	NWJ
BUI	- 0.43	MSI
QUC	- 0.43	AVK1
NWJ	- 0.39	QUC

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
SOQ	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
AVK1	0.18	(0.11)	0.00	2.52	0.00	0.00	0.00	(0.90)	1.75
K20A	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
QUC	1.88	0.13	0.04	1.49	1.69	(2.63)	3.48	(2.73)	14.58
NWJ	1.02	0.00	0.00	0.04	0.00	0.00	1.77	(2.39)	11.15
MSI	1.02	0.01	(0.02)	0.08	1.36	(1.37)	1.92	(2.78)	7.59
S9M	2.06	(0.03)	0.00	(0.04)	0.00	0.00	4.55	(4.73)	13.74
BUI	1.89	0.18	0.03	11.70	2.92	(2.50)	5.17	(2.65)	21.21

Be your own money manager

Our tools can tell you how much better you can do entering a position in Microsoft without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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