Comparison of Microsoft stock price movement with Competitors

Neeraj Tiwary Sep-16 Page 1 of 3

Comparison of Microsoft Stock Price Movement with

Competitors

Author: Neeraj Tiwary

Abstract A comparative study of stocks price movement of Microsoft and its competitors (CSC, IBM, Oracle,

Google, Apple, Adobe and Intuit)

Data source: http://finance.yahoo.com/q/hp?s=MSFT (CSC, IBM, Oracle, Google, Apple, CRM, Adobe, Intuit)

This comparative analysis did provide lot many valuable insights

Keywords: MSFT, ADBE, Stock

Introduction, Motivation and Questions Uses the stocks price data available in (http://finance.yahoo.com/q/hp?s=MSFT) for Microsoft and its

competitors from 2004 till date.

We observed a very strong correlation between the stocks price movement of MSFT and ADBE. The

pearson correlation coefficient is ~0.9

Comparison of Microsoft stock price movement with Competitors

Neeraj Tiwary Sep-16 Page 2 of 3

Methodology Pearson correlation coefficients

Comparison of Microsoft stock price movement with Competitors

Neeraj Tiwary Sep-16 Page 3 of 3

Results Observation:

Pearson correlation coefficient between

o MSFT and Adobe stocks is ~0.9

o MSFT and INTU stocks is ~0.84

o MSFT and Google stocks is ~0.47

o MSFT and APPLE Stocks is ~0.02

Conclusions and Next Steps The very strong correlation coefficient between MSFT and ADBE stocks sugggests similarities in

the processes of Microsoft and Adobe since 2004. Both are product based companies

The similar behaviour would be with Intuit

We should further explore the similarities between these companies and their behaviors

The correlation coefficient between MSFT and Google is just 0.47 whereas with APPLE, it is 0.02

These medium correlation with Google and very low correlation with APPLE suggest that these

companies are following some different inuitive approaches than Microsoft.

We should furhter understand their processes / priorities and fine tune ours accordingly.

The distribution of data for MSFT stock is right skewed

Code R Code:

Data Data source: http://finance.yahoo.com/q/hp?s=MSFT (CSC, IBM, Oracle, Google, Apple, CRM, Adobe, Intuit)