BAC vs MS: Correlation
How closely do Bank of America (BAC) and Morgan Stanley (MS) trade together? Their weekly returns over three years give a correlation of 0.77, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BAC and MS?
Over the past 3 years, BAC and MS moved with a correlation of 0.77, which is strong. The past 12 months show a weaker link (0.60) than the 3-year average (0.77). Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 578.5 %².
Among the 45 assets we track against BAC, MS ranks #16 by 3-year correlation. Correlation aside, the last 12 months split them widely, with MS ahead by 23.0 points (+24.1% versus +47.1%). On a rolling one-year basis the correlation drifted between 0.59 and 0.88, a moderate band.
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 MS: side by side
| BAC (Bank of America) | MS (Morgan Stanley) | |
|---|---|---|
| 1-year return | +24.1% | +47.1% |
| 5-year return | +66.0% | +142.0% |
| Volatility (ann.) | 26.5% | 28.3% |
| Beta vs S&P 500 | 1.11 | 1.43 |
| Max drawdown (3Y) | -27.5% | -29.2% |
| Market cap | $427.7B | $337.5B |
| P/E (trailing) | 14.1 | 17.4 |
| Dividend yield | 1.80% | 1.94% |
| Sector / category | Financials | Financials |
Year-by-year returns
| Year | BAC | MS |
|---|---|---|
| 2022 | -23.8% | -10.3% |
| 2023 | +4.8% | +13.9% |
| 2024 | +33.9% | +39.7% |
| 2025 | +28.0% | +45.2% |
| 2026 | +12.4% | +23.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BAC and MS good diversifiers for each other?
Only partially. A correlation of 0.77 means BAC and MS 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 MS?
As of 2026-08-27, the correlation of weekly returns between BAC and MS is 0.77 over 3 years, 0.60 over 1 year and 0.78 over 5 years.
Is MS a good diversifier for BAC?
Only partially. A correlation of 0.77 means BAC and MS share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.77 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bac-vs-ms.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bac-vs-ms/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BAC correlations · MS correlations
