MS vs SPY: Correlation
How closely do Morgan Stanley (MS) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.73, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MS and SPY?
Over the past 3 years, MS and SPY moved with a correlation of 0.73, which is strong. Recent behaviour matches the longer record: 0.72 over 1 year against 0.73 over 3. Over 5 years the correlation is 0.69, and the annualized covariance of weekly returns is 299.3 %².
Within MS's tracked universe of 46 assets, SPY comes in at #18 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months MS outperformed by 26.5 percentage points (+47.1% for MS against +20.6% for SPY). On a rolling one-year basis the correlation drifted between 0.48 and 0.89, a moderate band. Note the risk asymmetry: MS runs 2.0 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 SPY: side by side
| MS (Morgan Stanley) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +47.1% | +20.6% |
| 5-year return | +142.0% | +82.4% |
| Volatility (ann.) | 28.3% | 14.5% |
| Beta vs S&P 500 | 1.43 | 1.00 |
| Max drawdown (3Y) | -29.2% | -18.8% |
| Market cap | $337.5B | – |
| P/E (trailing) | 17.4 | – |
| Dividend yield | 1.94% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Financials | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | MS | SPY |
|---|---|---|
| 2022 | -10.3% | -18.2% |
| 2023 | +13.9% | +26.2% |
| 2024 | +39.7% | +24.9% |
| 2025 | +45.2% | +17.7% |
| 2026 | +23.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
MS represents 0.39% of SPY's portfolio, so part of any move in SPY is MS itself, and the correlation between them is partly mechanical.
Are MS and SPY good diversifiers for each other?
Only partially. A correlation of 0.73 means MS and SPY 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 SPY?
As of 2026-08-27, the correlation of weekly returns between MS and SPY is 0.73 over 3 years, 0.72 over 1 year and 0.69 over 5 years.
Is SPY a good diversifier for MS?
Only partially. A correlation of 0.73 means MS and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
A reading of 0.73 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/ms-vs-spy.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ms-vs-spy/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MS correlations · SPY correlations
