CL vs USO: Correlation
Measured on weekly returns over the past three years, Colgate-Palmolive (CL) and United States Oil Fund (USO) carry a correlation of -0.25, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CL and USO?
Over the past 3 years, CL and USO moved with a correlation of -0.25, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.35) sits close to the 3-year figure. Over 5 years the correlation is -0.17, and the annualized covariance of weekly returns is -166.9 %².
Out of 40 assets tracked against CL, USO lands near the bottom at #38. Their recent paths diverged sharply: over the last 12 months USO outperformed by 63.7 percentage points (+10.4% for CL against +74.1% for USO). The rolling one-year correlation moved between -0.42 and 0.02 over the past three years, a moderate range. Note the risk asymmetry: USO runs 2.3 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.
CL vs USO: side by side
| CL (Colgate-Palmolive) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +10.4% | +74.1% |
| 5-year return | +32.0% | +168.6% |
| Volatility (ann.) | 16.9% | 39.4% |
| Beta vs S&P 500 | 0.17 | -0.20 |
| Max drawdown (3Y) | -29.0% | -32.5% |
| Market cap | $72.5B | – |
| P/E (trailing) | 36.2 | – |
| Dividend yield | 2.27% | – |
| Sector / category | Consumer Staples | ETF · Commodities |
Year-by-year returns
| Year | CL | USO |
|---|---|---|
| 2022 | -5.4% | +29.0% |
| 2023 | +3.8% | -4.9% |
| 2024 | +16.6% | +13.4% |
| 2025 | -11.0% | -8.5% |
| 2026 | +17.2% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CL and USO good diversifiers for each other?
Yes: at -0.25, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between CL and USO?
The CL/USO correlation stands at -0.25 on a 3-year window (1 year: -0.35, 5 years: -0.17), computed from weekly returns as of 2026-08-27.
Is USO a good diversifier for CL?
Yes: at -0.25, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.25 mean?
On the −1 to +1 scale, -0.25 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/cl-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cl-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CL correlations · USO correlations
