AROW vs. MSCI

Last updated Jun 3, 2026

AROW (Arrow Financial Corporation) and MSCI (MSCI Inc.) are both stocks. Both are in the Financial Services sector — AROW in Banks - Regional, MSCI in Financial Data & Stock Exchanges. Over the past 10 years, AROW returned 8.71%/yr vs 24.75%/yr for MSCI. At a 0.32 correlation, their price movements are largely independent.

Performance

AROW vs. MSCI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Arrow Financial Corporation (AROW) and MSCI Inc. (MSCI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AROW achieves a 19.80% return, which is significantly higher than MSCI's 10.69% return. Over the past 10 years, AROW has underperformed MSCI with an annualized return of 8.71%, while MSCI has yielded a comparatively higher 24.75% annualized return.

AROW

• 1D: 1.65%
• 1M: 0.42%
• YTD: 19.80%
• 6M: 24.97%
• 1Y: 51.03%
• 3Y*: 29.22%
• 5Y*: 5.99%
• 10Y*: 8.71%

MSCI

• 1D: -2.11%
• 1M: 7.42%
• YTD: 10.69%
• 6M: 16.03%
• 1Y: 13.27%
• 3Y*: 10.96%
• 5Y*: 7.59%
• 10Y*: 24.75%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AROW vs. MSCI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AROW Arrow Financial Corporation	19.80%	13.95%	7.15%	-10.78%	2.33%	24.98%	-15.58%	25.41%	-0.08%	-11.10%
MSCI MSCI Inc.	10.69%	-3.17%	7.31%	22.90%	-23.34%	38.14%	74.38%	77.19%	17.95%	62.63%

Correlation

The correlation between AROW and MSCI is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.24
Correlation (3Y) Calculated over the trailing 3-year period	0.24
Correlation (5Y) Calculated over the trailing 5-year period	0.27
Correlation (10Y) Calculated over the trailing 10-year period	0.26
Correlation (All Time) Calculated using the full available price history since Nov 16, 2007	0.32

Fundamentals

Market Cap AROW : $606.75M MSCI : $46.26B
EPS AROW : $3.11 MSCI : $17.28
PE Ratio AROW : 11.90 MSCI : 36.47
PEG Ratio AROW : 4.94 MSCI : 2.26
PS Ratio AROW : 2.55 MSCI : 14.86
Total Revenue (TTM) AROW : $238.17M MSCI : $3.24B
Gross Profit (TTM) AROW : $124.15M MSCI : $2.68B
EBITDA (TTM) AROW : $50.82M MSCI : $1.99B

Return for Risk

AROW vs. MSCI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AROW

AROW Risk / Return Rank: 85
AROW Sharpe Ratio Rank: 87
AROW Sortino Ratio Rank: 85
AROW Omega Ratio Rank: 81
AROW Calmar Ratio Rank: 87
AROW Martin Ratio Rank: 88

MSCI

MSCI Risk / Return Rank: 54
MSCI Sharpe Ratio Rank: 56
MSCI Sortino Ratio Rank: 49
MSCI Omega Ratio Rank: 50
MSCI Calmar Ratio Rank: 56
MSCI Martin Ratio Rank: 59

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AROW vs. MSCI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Arrow Financial Corporation (AROW) and MSCI Inc. (MSCI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AROW	MSCI	Difference
Sharpe ratio Return per unit of total volatility	1.95	0.47	+1.48
Sortino ratio Return per unit of downside risk	2.74	0.83	+1.91
Omega ratio Gain probability vs. loss probability	1.32	1.11	+0.21
Calmar ratio Return relative to maximum drawdown	3.90	0.74	+3.16
Martin ratio Return relative to average drawdown	10.89	1.94	+8.95
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AROW vs. MSCI - Sharpe Ratio Comparison

The current AROW Sharpe Ratio is 1.95, which is higher than the MSCI Sharpe Ratio of 0.47. The chart below compares the historical Sharpe Ratios of AROW and MSCI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AROW	MSCI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.95	0.47	+1.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.25	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.27	0.80	-0.53
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.56	-0.22

Drawdowns

AROW vs. MSCI - Drawdown Comparison

The maximum AROW drawdown since its inception was -67.11%, roughly equal to the maximum MSCI drawdown of -69.06%. Use the drawdown chart below to compare losses from any high point for AROW and MSCI.

Drawdown Indicators

	AROW	MSCI	Difference
Max Drawdown Largest peak-to-trough decline	-67.11%	-69.06%	+1.95%
Max Drawdown (1Y) Largest decline over 1 year	-12.58%	-18.07%	+5.49%
Max Drawdown (3Y) Largest decline over 3 years	-29.91%	-25.99%	-3.92%
Max Drawdown (5Y) Largest decline over 5 years	-50.54%	-43.74%	-6.80%
Max Drawdown (10Y) Largest decline over 10 years	-50.54%	-43.74%	-6.80%
Current Drawdown Current decline from peak	-1.18%	-2.11%	+0.93%
Average Drawdown Average peak-to-trough decline	-12.38%	-13.09%	+0.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.50%	6.87%	-2.37%

Volatility

AROW vs. MSCI - Volatility Comparison

The current volatility for Arrow Financial Corporation (AROW) is 6.24%, while MSCI Inc. (MSCI) has a volatility of 7.42%. This indicates that AROW experiences smaller price fluctuations and is considered to be less risky than MSCI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AROW	MSCI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.24%	7.42%	-1.18%
Volatility (6M) Calculated over the trailing 6-month period	17.23%	20.60%	-3.37%
Volatility (1Y) Calculated over the trailing 1-year period	26.40%	28.45%	-2.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.67%	30.70%	-0.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.27%	31.17%	+1.10%

Dividends

AROW vs. MSCI - Dividend Comparison

AROW's dividend yield for the trailing twelve months is around 3.19%, more than MSCI's 1.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AROW Arrow Financial Corporation	3.19%	3.63%	3.80%	3.78%	3.12%	2.89%	3.40%	2.69%	3.12%	2.88%	2.42%	3.63%
MSCI MSCI Inc.	1.22%	1.25%	1.07%	0.98%	0.98%	0.59%	0.65%	0.98%	1.30%	1.04%	1.27%	1.11%

Financials

AROW vs. MSCI - Profitability Comparison

The chart below illustrates the profitability comparison between Arrow Financial Corporation and MSCI Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AROW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Arrow Financial Corporation reported a gross profit of 0.00 and revenue of 53.79M. Therefore, the gross margin over that period was 0.0%.

MSCI - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, MSCI Inc. reported a gross profit of 709.00M and revenue of 850.80M. Therefore, the gross margin over that period was 83.3%.

AROW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Arrow Financial Corporation reported an operating income of 640.00K and revenue of 53.79M, resulting in an operating margin of 1.2%.

MSCI - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, MSCI Inc. reported an operating income of 456.90M and revenue of 850.80M, resulting in an operating margin of 53.7%.

AROW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Arrow Financial Corporation reported a net income of 13.49M and revenue of 53.79M, resulting in a net margin of 25.1%.

MSCI - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, MSCI Inc. reported a net income of 406.00M and revenue of 850.80M, resulting in a net margin of 47.7%.

Frequently Asked Questions

Can I hold both AROW and MSCI in my portfolio?

AROW and MSCI have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AROW or MSCI?

MSCI has higher volatility (7.42%) compared to AROW (6.24%). In terms of maximum drawdown, AROW dropped -67.11% vs MSCI's -69.06%.

Which has better risk-adjusted returns?

AROW currently has the higher Sharpe Ratio (1.95 vs 0.47), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.