AGG vs FANG: Correlation
iShares Core US Aggregate Bond ETF (AGG) and Diamondback Energy (FANG) show a negative relationship: their 3-year correlation of weekly returns is -0.26.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and FANG?
Across a 3-year window, the weekly returns of AGG and FANG correlate at -0.26, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.59 versus -0.26 over 3 years. Stretching to 5 years gives -0.16, with an annualized covariance of -46.5 %².
Within AGG's tracked universe of 34 assets, FANG comes in at #27 by 3-year correlation. The last year tells two different stories: FANG led by 37.3 percentage points, +2.3% for AGG against +39.6% for FANG. This link changes with the market regime, having swung between -0.57 and 0.02 on a rolling one-year basis. Note the risk asymmetry: FANG runs 6.4 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.
AGG vs FANG: side by side
| AGG (iShares Core US Aggregate Bond ETF) | FANG (Diamondback Energy) | |
|---|---|---|
| 1-year return | +2.3% | +39.6% |
| 5-year return | -1.1% | +224.9% |
| Volatility (ann.) | 5.3% | 34.1% |
| Beta vs S&P 500 | 0.07 | 0.32 |
| Max drawdown (3Y) | -4.8% | -42.1% |
| Market cap | – | $56.1B |
| P/E (trailing) | – | 38.0 |
| Dividend yield | 4.05% | 2.13% |
| Expense ratio | 0.03% | – |
| Assets under management | $137.1B | – |
| Sector / category | ETF · Bonds | Energy |
AGG, iShares's Intermediate Core Bond fund, carries $137.1B under management, a 0.03% expense ratio, a 4.05% trailing dividend yield.
Year-by-year returns
| Year | AGG | FANG |
|---|---|---|
| 2022 | -13.0% | +35.3% |
| 2023 | +5.7% | +19.7% |
| 2024 | +1.3% | +10.3% |
| 2025 | +7.2% | -5.6% |
| 2026 | +0.3% | +35.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and FANG good diversifiers for each other?
Yes. With a correlation of -0.26, AGG and FANG have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AGG and FANG?
Using weekly returns as of 2026-08-27: -0.26 over 3 years, with -0.59 over the last year and -0.16 over 5 years.
Is FANG a good diversifier for AGG?
Yes. With a correlation of -0.26, AGG and FANG have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.26 mean?
A reading of -0.26 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/agg-vs-fang.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/agg-vs-fang/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AGG correlations · FANG correlations
