Stock correlation analysis

By abhishek.verma75000 · February 10, 2026

showing a very strong correlation of 0.9229. This means MSFT's price movements align closely with the overall market direction about 92% of the time.

Microsoft (MSFT) moves most closely with the S&P 500 index, showing a very strong correlation of 0.9229. This means MSFT's price movements align closely with the overall market direction about 92% of the time.

The analysis successfully calculated the maximum price drawdown for each of the five stocks in your dataset. A drawdown measures the largest peak-to-trough decline in stock price, showing how much value was lost from the highest point before recovery.

I've analyzed the historical monthly returns across all five stocks (Microsoft, IBM, Starbucks, Apple, and S&P 500) from 2007-2016. The analysis generated two data tables showing the average daily returns for each month.

Apple (AAPL) delivered the highest total return from 2007 to 2016 with an impressive 806.77% gain. This means if you invested $100 in Apple stock at the beginning of 2007, it would have grown to over $900 by the end of 2016.

I've analyzed the annual returns for MSFT, IBM, SBUX, and AAPL from 2007 to 2016. The data shows significant variation across years and stocks, with some years showing strong gains and others notable losses. A grouped bar chart has been created to visualize how each stock performed year-by-year, making it easy to compare their relative performance.

Over the period from January 2007 to March 2016, Apple (AAPL) dramatically outperformed the overall market. While AAPL's stock price grew by an impressive 806.8%, the S&P 500 index (GSPC) grew by 39.7% during the same timeframe. This means AAPL outperformed the market by 767.1 percentage points.

SBUX (Starbucks) exhibits the highest price volatility and investment risk among the analyzed stocks. The analysis measured volatility using the coefficient of variation, which compares price fluctuations relative to the average price, making it ideal for comparing stocks at different price levels.

The analysis generated a comprehensive visualization showing how different stocks recovered from the 2008 financial crisis. The chart displays normalized stock prices (where 100 represents the pre-crisis peak) for MSFT, IBM, SBUX, AAPL, and the S&P 500 index (GSPC) over time.

The analysis identified specific periods when Starbucks (SBUX) outperformed both Microsoft (MSFT) and IBM based on cumulative returns. Two detailed tables were generated showing the comparative performance data across all three stocks over time.

I've analyzed how each stock performed during the 2008 financial crisis period (2007-2009). The analysis generated two data tables showing the performance metrics for all five stocks: Microsoft (MSFT), IBM, Starbucks (SBUX), Apple (AAPL), and the S&P 500 index (GSPC).

I've analyzed when each stock first reached its all-time high price in the dataset. The visualization shows a bar chart displaying the all-time high prices for each stock, with the dates labeled on top of each bar.

SBUX (Starbucks) shows the strongest price momentum in the most recent year of data, with an impressive 29.03% gain. The analysis examined five stocks over the past year and ranked them by their percentage price change from start to end of the period.

The stock pair with the lowest correlation is MSFT (Microsoft) and IBM, with a correlation of 0.4820. This pair offers the best diversification benefit among all the stocks analyzed because their prices move together the least, meaning when one stock goes up or down, the other is less likely to follow the same pattern.

AAPL (Apple) offers the best risk-adjusted returns with a ratio of 0.882, meaning it delivers the highest return per unit of volatility among all analyzed stocks.

Yes, there are consistent day-of-week patterns in stock price movements. The analysis reveals that Tuesday tends to be the strongest trading day with an average return of 0.11% across all stocks, while Friday shows the weakest performance with a slight negative average of -0.02%. However, individual stocks show varying patterns - for example, Apple performs best on Mondays (0.38% return) while Starbucks performs best on Thursdays (0.18% return).

The combined performance of Microsoft and Apple significantly outperformed the S&P 500 over the period from January 2007 to March 2016. The tech stocks delivered an impressive 463% return compared to the S&P 500's 39.7% return, representing an outperformance of 423.5 percentage points.

Q3 (July-September) consistently delivers the best average returns across all stocks analyzed. The third quarter shows an average daily return of 0.0747%, outperforming all other quarters.

Over the period from January 2007 to March 2016, IBM significantly outperformed the S&P 500. While IBM delivered a total return of 66.9%, the S&P 500 returned 39.7%, resulting in IBM outperforming by 27.2 percentage points.