MSFT vs PLTR: Correlation
Microsoft (MSFT) and Palantir Technologies (PLTR) show a moderate relationship: their 3-year correlation of weekly returns is 0.45.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSFT and PLTR?
Over the past 3 years, MSFT and PLTR moved with a correlation of 0.45, which is moderate. The link has tightened recently: the 1-year correlation (0.59) runs above the 3-year figure (0.45). Over 5 years the correlation is 0.46, and the annualized covariance of weekly returns is 882.3 %².
Among the 39 assets we track against MSFT, PLTR ranks #20 by 3-year correlation. Correlation aside, the last 12 months split them widely, with PLTR ahead by 18.1 points (+0.5% versus +18.6%). On a rolling one-year basis the correlation drifted between 0.29 and 0.69, a moderate band. One caveat on sizing: PLTR is 2.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 PLTR: side by side
| MSFT (Microsoft) | PLTR (Palantir Technologies) | |
|---|---|---|
| 1-year return | +0.5% | +18.6% |
| 5-year return | +73.3% | +621.8% |
| Volatility (ann.) | 27.5% | 71.3% |
| Beta vs S&P 500 | 1.12 | 2.47 |
| Max drawdown (3Y) | -34.5% | -48.2% |
| Market cap | $3,750.3B | $446.8B |
| P/E (trailing) | 28.1 | 151.2 |
| Dividend yield | 0.73% | 0.00% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | MSFT | PLTR |
|---|---|---|
| 2022 | -28.0% | -64.7% |
| 2023 | +58.2% | +167.4% |
| 2024 | +12.9% | +340.5% |
| 2025 | +15.6% | +135.0% |
| 2026 | +5.1% | +4.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSFT and PLTR good diversifiers for each other?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between MSFT and PLTR?
The MSFT/PLTR correlation stands at 0.45 on a 3-year window (1 year: 0.59, 5 years: 0.46), computed from weekly returns as of 2026-08-27.
Is PLTR a good diversifier for MSFT?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.45 mean?
On the −1 to +1 scale, 0.45 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.
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Related comparisons
Hubs: MSFT correlations · PLTR correlations
