Microsoft Correlations
| MSFT Stock | USD 374.51 4.40 1.16% |
The correlation of Microsoft is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microsoft. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. Microsoft |
The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Microsoft - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Microsoft to buy it.
Moving together with Microsoft Stock
| + | 0.69 | SQ | Block Inc | Fiscal Quarter End 31st of December 2023 | PairCorr | |
| + | 0.89 | ZS | Zscaler | Fiscal Quarter End 31st of January 2024 | PairCorr | |
| + | 0.67 | DOCN | DigitalOcean Holdings | Fiscal Quarter End 31st of December 2023 | PairCorr | |
| + | 0.94 | VRNS | Varonis Systems | Fiscal Quarter End 31st of December 2023 | PairCorr | |
| + | 0.74 | ESMT | EngageSmart LLC | Fiscal Quarter End 31st of December 2023 | PairCorr |
Moving against Microsoft Stock
| - | 0.87 | EGIO | Edgio Inc | Fiscal Quarter End 31st of December 2023 | PairCorr | |
| - | 0.82 | GB | Global Blue Group | PairCorr | ||
| - | 0.76 | EVCM | EverCommerce | Fiscal Quarter End 31st of December 2023 | PairCorr | |
| - | 0.59 | JG | Aurora Mobile | Fiscal Quarter End 31st of December 2023 | PairCorr | |
| - | 0.51 | VERI | Veritone | Fiscal Quarter End 31st of December 2023 | PairCorr | |
| - | 0.46 | BB | BlackBerry | Report 19th of December 2023 | PairCorr | |
| - | 0.46 | NN | Nextnav Acquisition Corp | Fiscal Quarter End 31st of December 2023 | PairCorr | |
| - | 0.44 | VRAR | Glimpse Group | Fiscal Quarter End 31st of December 2023 | PairCorr |
Related Correlations Analysis
S | ESMT | DIS | KO | XOM | MMM | T | JPM | HPQ | ||
S | 0.01 | 0.56 | 0.28 | -0.1 | 0.47 | 0.22 | 0.76 | 0.62 | S | |
ESMT | 0.01 | 0.58 | -0.14 | -0.91 | -0.45 | 0.77 | 0.19 | -0.03 | ESMT | |
DIS | 0.56 | 0.58 | 0.32 | -0.62 | 0.17 | 0.75 | 0.84 | 0.48 | DIS | |
KO | 0.28 | -0.14 | 0.32 | 0.03 | 0.83 | 0.34 | 0.39 | 0.73 | KO | |
XOM | -0.1 | -0.91 | -0.62 | 0.03 | 0.27 | -0.71 | -0.25 | -0.16 | XOM | |
MMM | 0.47 | -0.45 | 0.17 | 0.83 | 0.27 | -0.07 | 0.37 | 0.85 | MMM | |
T | 0.22 | 0.77 | 0.75 | 0.34 | -0.71 | -0.07 | 0.54 | 0.19 | T | |
JPM | 0.76 | 0.19 | 0.84 | 0.39 | -0.25 | 0.37 | 0.54 | 0.53 | JPM | |
HPQ | 0.62 | -0.03 | 0.48 | 0.73 | -0.16 | 0.85 | 0.19 | 0.53 | HPQ | |
S | ESMT | DIS | KO | XOM | MMM | T | JPM | HPQ |
| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations | High negative correlations |
Risk-Adjusted Indicators
There is a big difference between Microsoft Stock performing well and Microsoft company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Microsoft's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Information Ratio | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| S | 2.23 | 0.31 | 0.13 | 0.17 | 2.21 | 0.11 | (2.62) | 5.09 | (3.87) | 10.55 | |
| ESMT | 1.17 | 0.40 | 0.34 | (3.88) | 0.62 | 0.18 | (1.41) | 3.56 | (2.18) | 12.23 | |
| DIS | 1.19 | 0.14 | 0.09 | 0.22 | 1.30 | 0.08 | (1.43) | 2.64 | (2.44) | 9.72 | |
| KO | 0.74 | (0.03) | 0.00 | (0.05) | 0.00 | (0.0358) | 0.00 | 1.44 | (1.07) | 5.79 | |
| XOM | 1.13 | (0.10) | 0.00 | (0.17) | 0.00 | (0.07) | 0.00 | 3.18 | (1.91) | 7.07 | |
| MMM | 1.12 | (0.06) | 0.00 | (0.03) | 0.00 | (0.0343) | 0.00 | 2.13 | (2.32) | 7.84 | |
| T | 1.12 | 0.22 | 0.16 | 0.33 | 1.09 | 0.14 | (1.25) | 2.97 | (2.17) | 9.36 | |
| JPM | 0.73 | 0.08 | 0.08 | 0.10 | 0.93 | 0.08 | (0.77) | 1.54 | (1.36) | 5.54 | |
| HPQ | 0.99 | 0.01 | 0.01 | 0.03 | 1.16 | 0.009 | (1.12) | 2.16 | (2.11) | 4.89 |
Be your own money manager
Our tools can tell you how much better you can do entering a position in Microsoft without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Microsoft Corporate Directors
Microsoft corporate directors refer to members of a Microsoft board of directors. The board of directors generally takes responsibility for the Microsoft's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Microsoft's board members must vote for the resolution. The Microsoft board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.| Charles Scharf | Director | Profile | |
| Helmut Panke | Independent Director | Profile | |
| Penny Pritzker | Independent Director | Profile | |
| Sandra Peterson | Independent Director | Profile |
Already Invested in Microsoft?
The danger of trading Microsoft is mainly related to its market volatility and company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Microsoft is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Microsoft. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Microsoft is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Microsoft is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Microsoft Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Microsoft Stock. Highlighted below are key reports to facilitate an investment decision about Microsoft Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microsoft. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.Note that the Microsoft information on this page should be used as a complementary analysis to other Microsoft's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Complementary Tools for Microsoft Stock analysis
When running Microsoft's price analysis, check to measure Microsoft's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microsoft is operating at the current time. Most of Microsoft's value examination focuses on studying past and present price action to predict the probability of Microsoft's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microsoft's price. Additionally, you may evaluate how the addition of Microsoft to your portfolios can decrease your overall portfolio volatility.
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Is Microsoft's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microsoft. If investors know Microsoft will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microsoft listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.272 | Dividend Share 2.79 | Earnings Share 10.34 | Revenue Per Share 29.347 | Quarterly Revenue Growth 0.128 |
The market value of Microsoft is measured differently than its book value, which is the value of Microsoft that is recorded on the company's balance sheet. Investors also form their own opinion of Microsoft's value that differs from its market value or its book value, called intrinsic value, which is Microsoft's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microsoft's market value can be influenced by many factors that don't directly affect Microsoft's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Microsoft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microsoft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.