MSFT vs ORCL: Correlation
How closely do Microsoft (MSFT) and Oracle Corporation (ORCL) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSFT and ORCL?
Across a 3-year window, the weekly returns of MSFT and ORCL correlate at 0.63, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.57, with an annualized covariance of 857.5 %².
Among the 39 assets we track against MSFT, ORCL ranks #8 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months MSFT outperformed by 35.3 percentage points (+0.5% for MSFT against -34.8% for ORCL). Across three years, the rolling one-year figure varied moderately, from 0.37 to 0.73. Risk is not evenly split, since ORCL carries 1.8 times the volatility of the other side.
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.
MSFT vs ORCL: side by side
| MSFT (Microsoft) | ORCL (Oracle Corporation) | |
|---|---|---|
| 1-year return | +0.5% | -34.8% |
| 5-year return | +73.3% | +81.7% |
| Volatility (ann.) | 27.5% | 49.9% |
| Beta vs S&P 500 | 1.12 | 1.71 |
| Max drawdown (3Y) | -34.5% | -64.6% |
| Market cap | $3,750.3B | $437.7B |
| P/E (trailing) | 28.1 | 25.5 |
| Dividend yield | 0.73% | 1.34% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | MSFT | ORCL |
|---|---|---|
| 2022 | -28.0% | -4.6% |
| 2023 | +58.2% | +30.9% |
| 2024 | +12.9% | +60.0% |
| 2025 | +15.6% | +18.1% |
| 2026 | +5.1% | -21.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSFT and ORCL good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MSFT and ORCL?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.63 over the last year and 0.57 over 5 years.
Is ORCL a good diversifier for MSFT?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.63 mean?
On the −1 to +1 scale, 0.63 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/msft-vs-orcl.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/msft-vs-orcl/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MSFT correlations · ORCL correlations
