MSFT vs SPY: Correlation
Microsoft (MSFT) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.59.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSFT and SPY?
Across a 3-year window, the weekly returns of MSFT and SPY correlate at 0.59, moderate. Recent behaviour matches the longer record: 0.53 over 1 year against 0.59 over 3. Stretching to 5 years gives 0.67, with an annualized covariance of 233.8 %².
Among the 39 assets we track against MSFT, SPY ranks #15 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SPY ahead by 20.1 points (+0.5% versus +20.6%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.53 and 0.75. Risk is not evenly split, since MSFT carries 1.9 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 SPY: side by side
| MSFT (Microsoft) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +0.5% | +20.6% |
| 5-year return | +73.3% | +82.4% |
| Volatility (ann.) | 27.5% | 14.5% |
| Beta vs S&P 500 | 1.12 | 1.00 |
| Max drawdown (3Y) | -34.5% | -18.8% |
| Market cap | $3,750.3B | – |
| P/E (trailing) | 28.1 | – |
| Dividend yield | 0.73% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Information Technology | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | MSFT | SPY |
|---|---|---|
| 2022 | -28.0% | -18.2% |
| 2023 | +58.2% | +26.2% |
| 2024 | +12.9% | +24.9% |
| 2025 | +15.6% | +17.7% |
| 2026 | +5.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
MSFT represents 5.58% of SPY's portfolio, so part of any move in SPY is MSFT itself, and the correlation between them is partly mechanical.
Are MSFT and SPY good diversifiers for each other?
Only partially. A correlation of 0.59 means MSFT and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between MSFT and SPY?
As of 2026-08-27, the correlation of weekly returns between MSFT and SPY is 0.59 over 3 years, 0.53 over 1 year and 0.67 over 5 years.
Is SPY a good diversifier for MSFT?
Only partially. A correlation of 0.59 means MSFT and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.59 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Hubs: MSFT correlations · SPY correlations
