MO vs MSFT: Correlation
Altria (MO) and Microsoft (MSFT) show a negative relationship: their 3-year correlation of weekly returns is -0.26.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MO and MSFT?
Over the past 3 years, MO and MSFT moved with a correlation of -0.26, which is negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.36 over 1 year against -0.26 over 3. Over 5 years the correlation is -0.12, and the annualized covariance of weekly returns is -159.0 %².
MSFT is close to the least connected end of MO's tracked universe, ranking #45 of 49. On 12-month performance MO holds a 8.3-point edge, +8.8% against +0.5%. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.39 to 0.14.
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.
MO vs MSFT: side by side
| MO (Altria) | MSFT (Microsoft) | |
|---|---|---|
| 1-year return | +8.8% | +0.5% |
| 5-year return | +100.4% | +73.3% |
| Volatility (ann.) | 21.8% | 27.5% |
| Beta vs S&P 500 | -0.07 | 1.12 |
| Max drawdown (3Y) | -16.4% | -34.5% |
| Market cap | $113.0B | $3,750.3B |
| P/E (trailing) | 14.6 | 28.1 |
| Dividend yield | 6.13% | 0.73% |
| Sector / category | Consumer Staples | Information Technology |
Year-by-year returns
| Year | MO | MSFT |
|---|---|---|
| 2022 | +4.4% | -28.0% |
| 2023 | -3.7% | +58.2% |
| 2024 | +40.8% | +12.9% |
| 2025 | +18.2% | +15.6% |
| 2026 | +21.1% | +5.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MO and MSFT good diversifiers for each other?
Yes. With a correlation of -0.26, MO and MSFT have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between MO and MSFT?
The MO/MSFT correlation stands at -0.26 on a 3-year window (1 year: -0.36, 5 years: -0.12), computed from weekly returns as of 2026-08-27.
Is MSFT a good diversifier for MO?
Yes. With a correlation of -0.26, MO and MSFT have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.26 mean?
On the −1 to +1 scale, -0.26 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/mo-vs-msft.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mo-vs-msft/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MO correlations · MSFT correlations
