MS vs SCHW: Correlation
How closely do Morgan Stanley (MS) and Charles Schwab Corporation (SCHW) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MS and SCHW?
Over the past 3 years, MS and SCHW moved with a correlation of 0.62, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.39 versus 0.62 over 3 years. Over 5 years the correlation is 0.63, and the annualized covariance of weekly returns is 487.5 %².
Within MS's tracked universe of 46 assets, SCHW comes in at #31 by 3-year correlation. The last year tells two different stories: MS led by 34.1 percentage points, +47.1% for MS against +13.0% for SCHW. The rolling one-year correlation moved between 0.40 and 0.78 over the past three years, a moderate range.
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 SCHW: side by side
| MS (Morgan Stanley) | SCHW (Charles Schwab Corporation) | |
|---|---|---|
| 1-year return | +47.1% | +13.0% |
| 5-year return | +142.0% | +57.3% |
| Volatility (ann.) | 28.3% | 27.8% |
| Beta vs S&P 500 | 1.43 | 0.93 |
| Max drawdown (3Y) | -29.2% | -21.4% |
| Market cap | $337.5B | $186.9B |
| P/E (trailing) | 17.4 | 19.9 |
| Dividend yield | 1.94% | 1.08% |
| Sector / category | Financials | Financials |
Year-by-year returns
| Year | MS | SCHW |
|---|---|---|
| 2022 | -10.3% | +0.1% |
| 2023 | +13.9% | -16.0% |
| 2024 | +39.7% | +9.2% |
| 2025 | +45.2% | +36.6% |
| 2026 | +23.0% | +9.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MS and SCHW good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MS and SCHW?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.39 over the last year and 0.63 over 5 years.
Is SCHW a good diversifier for MS?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 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-schw.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ms-vs-schw/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MS correlations · SCHW correlations
