EEM vs USO: Correlation
iShares MSCI Emerging Markets ETF (EEM) and United States Oil Fund (USO) 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 EEM and USO?
Over the past 3 years, EEM and USO moved with a correlation of -0.26, which is negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.52) runs below the 3-year figure (-0.26). Over 5 years the correlation is -0.07, and the annualized covariance of weekly returns is -182.0 %².
Among the 67 assets we track against EEM, USO sits near the bottom by co-movement, at rank #64. Correlation aside, the last 12 months split them widely, with USO ahead by 36.0 points (+38.1% versus +74.1%). This link changes with the market regime, having swung between -0.60 and 0.34 on a rolling one-year basis. One caveat on sizing: USO is 2.2 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.
EEM vs USO: side by side
| EEM (iShares MSCI Emerging Markets ETF) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +38.1% | +74.1% |
| 5-year return | +47.1% | +168.6% |
| Volatility (ann.) | 18.0% | 39.4% |
| Beta vs S&P 500 | 0.85 | -0.20 |
| Max drawdown (3Y) | -17.3% | -32.5% |
| Dividend yield | 1.73% | – |
| Expense ratio | 0.72% | – |
| Assets under management | $29.2B | – |
| Sector / category | ETF · International | ETF · Commodities |
EEM is a Diversified Emerging Mkts fund from iShares: $29.2B under management, 968 holdings, a 0.72% expense ratio, a 1.73% trailing dividend yield.
Year-by-year returns
| Year | EEM | USO |
|---|---|---|
| 2022 | -20.6% | +29.0% |
| 2023 | +8.9% | -4.9% |
| 2024 | +6.5% | +13.4% |
| 2025 | +34.0% | -8.5% |
| 2026 | +24.2% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and USO good diversifiers for each other?
Yes: at -0.26, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between EEM and USO?
The EEM/USO correlation stands at -0.26 on a 3-year window (1 year: -0.52, 5 years: -0.07), computed from weekly returns as of 2026-08-27.
Is USO a good diversifier for EEM?
Yes: at -0.26, the two have gone their own ways historically, which is what genuine diversification looks like.
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/eem-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/eem-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EEM correlations · USO correlations
