AOS vs USO: Correlation
A. O. Smith (AOS) and United States Oil Fund (USO) show a negative relationship: their 3-year correlation of weekly returns is -0.25.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AOS and USO?
On 3 years of weekly data the AOS/USO correlation comes out at -0.25, negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.48) than the 3-year average (-0.25). The 5-year figure is -0.12, and annualized covariance runs at -228.9 %².
USO is close to the least connected end of AOS's tracked universe, ranking #31 of 33. Correlation aside, the last 12 months split them widely, with USO ahead by 86.7 points (-12.6% versus +74.1%). This link changes with the market regime, having swung between -0.50 and 0.15 on a rolling one-year basis. Note the risk asymmetry: USO runs 1.7 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.
AOS vs USO: side by side
| AOS (A. O. Smith) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | -12.6% | +74.1% |
| 5-year return | -6.7% | +168.6% |
| Volatility (ann.) | 23.5% | 39.4% |
| Beta vs S&P 500 | 0.67 | -0.20 |
| Max drawdown (3Y) | -36.9% | -32.5% |
| Market cap | $8.4B | – |
| P/E (trailing) | 17.4 | – |
| Dividend yield | 2.27% | – |
| Sector / category | Industrials | ETF · Commodities |
Year-by-year returns
| Year | AOS | USO |
|---|---|---|
| 2022 | -32.1% | +29.0% |
| 2023 | +46.7% | -4.9% |
| 2024 | -15.9% | +13.4% |
| 2025 | +0.1% | -8.5% |
| 2026 | -5.8% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AOS and USO good diversifiers for each other?
Yes. With a correlation of -0.25, AOS and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AOS and USO?
Using weekly returns as of 2026-08-27: -0.25 over 3 years, with -0.48 over the last year and -0.12 over 5 years.
Is USO a good diversifier for AOS?
Yes. With a correlation of -0.25, AOS and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.25 mean?
A reading of -0.25 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/aos-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aos-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AOS correlations · USO correlations
