AGG vs OXY: Correlation
iShares Core US Aggregate Bond ETF (AGG) and Occidental Petroleum (OXY) show a negative relationship: their 3-year correlation of weekly returns is -0.24.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and OXY?
On 3 years of weekly data the AGG/OXY correlation comes out at -0.24, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.56 versus -0.24 over 3 years. The 5-year figure is -0.10, and annualized covariance runs at -39.3 %².
Among the 34 assets we track against AGG, OXY ranks #25 by 3-year correlation. The last year tells two different stories: OXY led by 26.6 percentage points, +2.3% for AGG against +28.9% for OXY. This link changes with the market regime, having swung between -0.55 and -0.00 on a rolling one-year basis. One caveat on sizing: OXY is 5.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 OXY: side by side
| AGG (iShares Core US Aggregate Bond ETF) | OXY (Occidental Petroleum) | |
|---|---|---|
| 1-year return | +2.3% | +28.9% |
| 5-year return | -1.1% | +150.8% |
| Volatility (ann.) | 5.3% | 30.6% |
| Beta vs S&P 500 | 0.07 | 0.13 |
| Max drawdown (3Y) | -4.8% | -46.9% |
| Market cap | – | $59.1B |
| P/E (trailing) | – | 17.3 |
| Dividend yield | 4.05% | 1.71% |
| Expense ratio | 0.03% | – |
| Assets under management | $137.1B | – |
| Sector / category | ETF · Bonds | Energy |
AGG is an Intermediate Core Bond fund from iShares: $137.1B under management, a 0.03% expense ratio, a 4.05% trailing dividend yield.
Year-by-year returns
| Year | AGG | OXY |
|---|---|---|
| 2022 | -13.0% | +119.1% |
| 2023 | +5.7% | -4.1% |
| 2024 | +1.3% | -15.9% |
| 2025 | +7.2% | -14.9% |
| 2026 | +0.3% | +45.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and OXY good diversifiers for each other?
Yes. With a correlation of -0.24, AGG and OXY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AGG and OXY?
The AGG/OXY correlation stands at -0.24 on a 3-year window (1 year: -0.56, 5 years: -0.10), computed from weekly returns as of 2026-08-27.
Is OXY a good diversifier for AGG?
Yes. With a correlation of -0.24, AGG and OXY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.24 mean?
On the −1 to +1 scale, -0.24 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/agg-vs-oxy.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/agg-vs-oxy/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AGG correlations · OXY correlations
