RY vs. BNS
RY (Royal Bank of Canada) and BNS (The Bank of Nova Scotia) are both stocks. Both operate in the Banks - Diversified industry within the Financial Services sector. Over the past 10 years, RY returned 17.22%/yr vs 11.97%/yr for BNS. A 0.70 correlation means they provide meaningful diversification when combined.
Performance
RY vs. BNS - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with RY having a 19.37% return and BNS slightly higher at 19.82%. Over the past 10 years, RY has outperformed BNS with an annualized return of 17.22%, while BNS has yielded a comparatively lower 11.97% annualized return.
RY
- 1D
- -0.21%
- 1M
- 8.61%
- YTD
- 19.37%
- 6M
- 23.12%
- 1Y
- 61.56%
- 3Y*
- 33.02%
- 5Y*
- 19.03%
- 10Y*
- 17.22%
BNS
- 1D
- 0.97%
- 1M
- 11.79%
- YTD
- 19.82%
- 6M
- 23.53%
- 1Y
- 66.71%
- 3Y*
- 28.06%
- 5Y*
- 13.19%
- 10Y*
- 11.97%
RY vs. BNS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
RY Royal Bank of Canada | 19.37% | 46.29% | 23.80% | 12.72% | -8.00% | 34.11% | 8.42% | 20.17% | -12.88% | 24.95% |
BNS The Bank of Nova Scotia | 19.82% | 45.11% | 17.55% | 8.53% | -28.05% | 40.62% | 1.70% | 17.49% | -18.28% | 21.83% |
Correlation
The correlation between RY and BNS is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.71 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.75 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.77 |
Correlation (All Time) Calculated using the full available price history since Sep 13, 1999 | 0.70 |
The correlation between RY and BNS has been stable across timeframes, ranging from 0.70 to 0.77 - a consistent structural relationship.
Fundamentals
RY:
$206.21B
BNS:
$78.28B
RY:
CA$18.17
BNS:
CA$8.23
RY:
15.46
BNS:
14.68
RY:
2.46
BNS:
1.99
RY:
2.23
BNS:
1.42
RY:
CA$138.99B
BNS:
CA$70.57B
RY:
CA$65.64B
BNS:
CA$33.43B
RY:
CA$30.01B
BNS:
CA$13.61B
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Return for Risk
RY vs. BNS — Risk / Return Rank
RY
BNS
RY vs. BNS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Royal Bank of Canada (RY) and The Bank of Nova Scotia (BNS). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| RY | BNS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.12 | ||
| Sortino ratioReturn per unit of downside risk | +0.38 | ||
| Omega ratioGain probability vs. loss probability | 1.72 | 1.72 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 6.16 | 5.02 | +1.15 |
| Martin ratioReturn relative to average drawdown | 22.97 | 19.68 | +3.29 |
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Drawdowns
RY vs. BNS - Drawdown Comparison
The maximum RY drawdown since its inception was -62.90%, roughly equal to the maximum BNS drawdown of -63.65%. Use the drawdown chart below to compare losses from any high point for RY and BNS.
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Drawdown Indicators
| RY | BNS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.90% | -63.65% | +0.75% |
Max Drawdown (1Y)Largest decline over 1 year | -10.04% | -13.36% | +3.32% |
Max Drawdown (3Y)Largest decline over 3 years | -19.88% | -19.51% | -0.37% |
Max Drawdown (5Y)Largest decline over 5 years | -28.36% | -39.12% | +10.76% |
Max Drawdown (10Y)Largest decline over 10 years | -39.95% | -46.29% | +6.34% |
Current DrawdownCurrent decline from peak | -0.21% | 0.00% | -0.21% |
Average DrawdownAverage peak-to-trough decline | -9.31% | -11.00% | +1.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.69% | 3.40% | -0.71% |
Volatility
RY vs. BNS - Volatility Comparison
The current volatility for Royal Bank of Canada (RY) is 3.71%, while The Bank of Nova Scotia (BNS) has a volatility of 4.86%. This indicates that RY experiences smaller price fluctuations and is considered to be less risky than BNS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RY | BNS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.71% | 4.86% | -1.15% |
Volatility (6M)Calculated over the trailing 6-month period | 11.30% | 13.03% | -1.73% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.08% | 16.82% | -1.74% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.00% | 19.56% | -1.56% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.75% | 21.92% | -2.17% |
Dividends
RY vs. BNS - Dividend Comparison
RY's dividend yield for the trailing twelve months is around 2.31%, less than BNS's 3.69% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BNS The Bank of Nova Scotia | 3.69% | 4.17% | 5.85% | 8.56% | 6.39% | 5.09% | 4.93% | 3.53% | 6.34% | 4.80% | 5.24% | 8.13% |
RY Royal Bank of Canada | 2.31% | 2.54% | 3.39% | 4.29% | 4.07% | 3.24% | 3.88% | 3.88% | 4.27% | 3.22% | 3.95% | 5.41% |
Financials
RY vs. BNS - Financials Comparison
This section allows you to compare key financial metrics between Royal Bank of Canada and The Bank of Nova Scotia. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
RY vs. BNS - Profitability Comparison
RY - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Royal Bank of Canada reported a gross profit of 16.51B and revenue of 33.93B. Therefore, the gross margin over that period was 48.7%.
BNS - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, The Bank of Nova Scotia reported a gross profit of 8.40B and revenue of 17.18B. Therefore, the gross margin over that period was 48.9%.
RY - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Royal Bank of Canada reported an operating income of 7.10B and revenue of 33.93B, resulting in an operating margin of 20.9%.
BNS - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, The Bank of Nova Scotia reported an operating income of 3.43B and revenue of 17.18B, resulting in an operating margin of 20.0%.
RY - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Royal Bank of Canada reported a net income of 5.51B and revenue of 33.93B, resulting in a net margin of 16.2%.
BNS - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, The Bank of Nova Scotia reported a net income of 2.59B and revenue of 17.18B, resulting in a net margin of 15.1%.
Frequently Asked Questions
RY and BNS have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BNS has higher volatility (4.86%) compared to RY (3.71%). In terms of maximum drawdown, RY dropped -62.90% vs BNS's -63.65%.
RY currently has the higher Sharpe Ratio (4.11 vs 3.99), 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.
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