BAC vs SCHW: Correlation
How closely do Bank of America (BAC) and Charles Schwab Corporation (SCHW) trade together? Their weekly returns over three years give a correlation of 0.57, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BAC and SCHW?
Across a 3-year window, the weekly returns of BAC and SCHW correlate at 0.57, moderate. The link has loosened recently: the 1-year correlation (0.45) runs below the 3-year figure (0.57). Stretching to 5 years gives 0.63, with an annualized covariance of 423.0 %².
Among the 45 assets we track against BAC, SCHW ranks #29 by 3-year correlation. Over the last 12 months BAC came out ahead by 11.1 percentage points (+24.1% against +13.0%). This link changes with the market regime, having swung between 0.37 and 0.87 on a rolling one-year basis.
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 SCHW: side by side
| BAC (Bank of America) | SCHW (Charles Schwab Corporation) | |
|---|---|---|
| 1-year return | +24.1% | +13.0% |
| 5-year return | +66.0% | +57.3% |
| Volatility (ann.) | 26.5% | 27.8% |
| Beta vs S&P 500 | 1.11 | 0.93 |
| Max drawdown (3Y) | -27.5% | -21.4% |
| Market cap | $427.7B | $186.9B |
| P/E (trailing) | 14.1 | 19.9 |
| Dividend yield | 1.80% | 1.08% |
| Sector / category | Financials | Financials |
Year-by-year returns
| Year | BAC | SCHW |
|---|---|---|
| 2022 | -23.8% | +0.1% |
| 2023 | +4.8% | -16.0% |
| 2024 | +33.9% | +9.2% |
| 2025 | +28.0% | +36.6% |
| 2026 | +12.4% | +9.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BAC and SCHW good diversifiers for each other?
To a limited degree. At 0.57 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between BAC and SCHW?
As of 2026-08-27, the correlation of weekly returns between BAC and SCHW is 0.57 over 3 years, 0.45 over 1 year and 0.63 over 5 years.
Is SCHW a good diversifier for BAC?
To a limited degree. At 0.57 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.57 mean?
A reading of 0.57 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bac-vs-schw.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/bac-vs-schw/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BAC correlations · SCHW correlations
