MS vs RSP: Correlation
Morgan Stanley (MS) and Invesco S&P 500 Equal Weight ETF (RSP) 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 MS and RSP?
Across a 3-year window, the weekly returns of MS and RSP correlate at 0.75, strong. Lately the two have drifted apart, with the 1-year correlation at 0.51 versus 0.75 over 3 years. Stretching to 5 years gives 0.72, with an annualized covariance of 278.6 %².
Among the 46 assets we track against MS, RSP ranks #11 by 3-year correlation. The last year tells two different stories: MS led by 27.9 percentage points, +47.1% for MS against +19.2% for RSP. The rolling one-year correlation moved between 0.51 and 0.86 over the past three years, a moderate range. Note the risk asymmetry: MS runs 2.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
MS vs RSP: side by side
| MS (Morgan Stanley) | RSP (Invesco S&P 500 Equal Weight ETF) | |
|---|---|---|
| 1-year return | +47.1% | +19.2% |
| 5-year return | +142.0% | +53.9% |
| Volatility (ann.) | 28.3% | 13.2% |
| Beta vs S&P 500 | 1.43 | 0.77 |
| Max drawdown (3Y) | -29.2% | -17.8% |
| Market cap | $337.5B | – |
| P/E (trailing) | 17.4 | – |
| Dividend yield | 1.94% | 1.49% |
| Expense ratio | – | 0.20% |
| Assets under management | – | $97.3B |
| Sector / category | Financials | ETF · US Large Cap |
On the fund side, RSP sits in the Large Blend category at Invesco, with $97.3B under management, 505 holdings, a 0.20% expense ratio, a 1.49% trailing dividend yield.
Year-by-year returns
| Year | MS | RSP |
|---|---|---|
| 2022 | -10.3% | -11.6% |
| 2023 | +13.9% | +13.7% |
| 2024 | +39.7% | +12.8% |
| 2025 | +45.2% | +11.2% |
| 2026 | +23.0% | +16.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
MS represents 0.19% of RSP's portfolio, so part of any move in RSP is MS itself, and the correlation between them is partly mechanical.
Are MS and RSP good diversifiers for each other?
Only partially. A correlation of 0.75 means MS and RSP 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 MS and RSP?
The MS/RSP correlation stands at 0.75 on a 3-year window (1 year: 0.51, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is RSP a good diversifier for MS?
Only partially. A correlation of 0.75 means MS and RSP 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?
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/ms-vs-rsp.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ms-vs-rsp/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MS correlations · RSP correlations
