Magnificent Seven vs the Rest of the S&P 500: Return Correlation (63 Trading Days)

## What this measures

How closely the Magnificent Seven (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla) have moved with the rest of the S&P 500 over the last 63 trading days, about three months: the Pearson correlation between the daily returns of the Magnificent Seven Index and the S&P 500 excluding the seven.

## Why it matters

The seven are about a third of the S&P 500's value. When they rise and fall with everything else, the market is trading on one story (rates, growth, risk appetite). When the correlation drops, the seven are moving on their own news, such as AI spending, and the index's direction depends more on a few companies.

## How to read it

From minus one to one. Near one, the seven and the rest move together day to day; near zero, they move independently; below zero, in opposite directions. From April 2021 to October 16, 2026 it ranged from 0.16 (July 16, 2024) to 0.89 (June 26, 2025) and was never below zero. The 126-day version (equities.mag7_vs_rest.correlation_126d) is the slower read of the same thing.

## What it does not say

Correlation is about direction, not size: the seven can move with the rest of the market and still move twice as far. A short window reacts to single events (an earnings week, a rate decision). Both indexes are price-only. The Magnificent Seven Index uses current share counts back in time, and the rest-of-index series is the S&P 500 fund's return with the seven's weight taken out, so it inherits both indexes' method (equities.mag7.index, equities.sp500_ex_mag7.index). It says nothing about which group did better: compare the two indexes for that.

## Source

Daily closes through a licensed market data provider; share counts from SEC filings. Index levels and correlation calculated by Palanor from daily log returns on trading days present in both indexes (a gap of more than five calendar days restarts the window). The first reading is April 6, 2021. Only the derived figure is published.