BAC vs COF: Correlation
Bank of America (BAC) and Capital One (COF) show a strong relationship: their 3-year correlation of weekly returns is 0.75.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BAC and COF?
Across a 3-year window, the weekly returns of BAC and COF correlate at 0.75, strong. The relationship has been stable: the 1-year correlation (0.70) sits close to the 3-year figure. Stretching to 5 years gives 0.74, with an annualized covariance of 611.6 %².
By 3-year correlation, COF places #20 of the 45 assets tracked against BAC. Their recent paths diverged sharply: over the last 12 months BAC outperformed by 26.1 percentage points (+24.1% for BAC against -2.0% for COF). The rolling one-year correlation stayed in a tight band between 0.69 and 0.85 over the past three years, which points to a structural rather than episodic relationship.
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.
BAC vs COF: side by side
| BAC (Bank of America) | COF (Capital One) | |
|---|---|---|
| 1-year return | +24.1% | -2.0% |
| 5-year return | +66.0% | +43.2% |
| Volatility (ann.) | 26.5% | 30.6% |
| Beta vs S&P 500 | 1.11 | 1.28 |
| Max drawdown (3Y) | -27.5% | -31.5% |
| Market cap | $427.7B | $132.9B |
| P/E (trailing) | 14.1 | 12.0 |
| Dividend yield | 1.80% | 1.38% |
| Sector / category | Financials | Financials |
Year-by-year returns
| Year | BAC | COF |
|---|---|---|
| 2022 | -23.8% | -34.6% |
| 2023 | +4.8% | +44.3% |
| 2024 | +33.9% | +38.2% |
| 2025 | +28.0% | +37.6% |
| 2026 | +12.4% | -9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BAC and COF good diversifiers for each other?
Only partially. A correlation of 0.75 means BAC and COF 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 BAC and COF?
As of 2026-08-27, the correlation of weekly returns between BAC and COF is 0.75 over 3 years, 0.70 over 1 year and 0.74 over 5 years.
Is COF a good diversifier for BAC?
Only partially. A correlation of 0.75 means BAC and COF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.75 mean?
On the −1 to +1 scale, 0.75 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: BAC correlations · COF correlations
