ADBE vs MSFT: Correlation
How closely do Adobe Inc. (ADBE) and Microsoft (MSFT) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADBE and MSFT?
Across a 3-year window, the weekly returns of ADBE and MSFT correlate at 0.56, moderate. The link has tightened recently: the 1-year correlation (0.67) runs above the 3-year figure (0.56). Stretching to 5 years gives 0.64, with an annualized covariance of 537.2 %².
Among the 32 assets we track against ADBE, MSFT ranks #6 by 3-year correlation. Correlation aside, the last 12 months split them widely, with MSFT ahead by 19.4 points (-18.9% versus +0.5%). The rolling one-year correlation moved between 0.28 and 0.72 over the past three years, a moderate range.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ADBE vs MSFT: side by side
| ADBE (Adobe Inc.) | MSFT (Microsoft) | |
|---|---|---|
| 1-year return | -18.9% | +0.5% |
| 5-year return | -56.6% | +73.3% |
| Volatility (ann.) | 35.1% | 27.5% |
| Beta vs S&P 500 | 1.04 | 1.12 |
| Max drawdown (3Y) | -69.5% | -34.5% |
| Market cap | $114.9B | $3,750.3B |
| P/E (trailing) | 15.6 | 28.1 |
| Dividend yield | 0.00% | 0.73% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | ADBE | MSFT |
|---|---|---|
| 2022 | -40.7% | -28.0% |
| 2023 | +77.3% | +58.2% |
| 2024 | -25.5% | +12.9% |
| 2025 | -21.3% | +15.6% |
| 2026 | -17.4% | +5.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ADBE and MSFT good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ADBE and MSFT?
As of 2026-08-27, the correlation of weekly returns between ADBE and MSFT is 0.56 over 3 years, 0.67 over 1 year and 0.64 over 5 years.
Is MSFT a good diversifier for ADBE?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/adbe-vs-msft.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/adbe-vs-msft/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ADBE correlations · MSFT correlations
