BAC vs WFC: Correlation
How closely do Bank of America (BAC) and Wells Fargo (WFC) trade together? Their weekly returns over three years give a correlation of 0.85, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BAC and WFC?
Over the past 3 years, BAC and WFC moved with a correlation of 0.85, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.88 over 1 year against 0.85 over 3. Over 5 years the correlation is 0.86, and the annualized covariance of weekly returns is 664.7 %².
WFC is one of the assets that tracks BAC most closely: it ranks #1 out of the 45 assets we track against BAC. Correlation aside, the last 12 months split them widely, with BAC ahead by 18.9 points (+24.1% versus +5.2%). The rolling one-year correlation stayed in a tight band between 0.74 and 0.92 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 WFC: side by side
| BAC (Bank of America) | WFC (Wells Fargo) | |
|---|---|---|
| 1-year return | +24.1% | +5.2% |
| 5-year return | +66.0% | +98.3% |
| Volatility (ann.) | 26.5% | 29.7% |
| Beta vs S&P 500 | 1.11 | 0.98 |
| Max drawdown (3Y) | -27.5% | -24.7% |
| Market cap | $427.7B | $256.9B |
| P/E (trailing) | 14.1 | 12.4 |
| Dividend yield | 1.80% | 2.11% |
| Sector / category | Financials | Financials |
Year-by-year returns
| Year | BAC | WFC |
|---|---|---|
| 2022 | -23.8% | -11.9% |
| 2023 | +4.8% | +22.9% |
| 2024 | +33.9% | +46.5% |
| 2025 | +28.0% | +35.6% |
| 2026 | +12.4% | -7.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BAC and WFC good diversifiers for each other?
No. With a correlation of 0.85, BAC and WFC move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between BAC and WFC?
The BAC/WFC correlation stands at 0.85 on a 3-year window (1 year: 0.88, 5 years: 0.86), computed from weekly returns as of 2026-08-27.
Is WFC a good diversifier for BAC?
No. With a correlation of 0.85, BAC and WFC move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.85 mean?
A reading of 0.85 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: BAC correlations · WFC correlations
