EWJ vs USO: Correlation
Measured on weekly returns over the past three years, iShares MSCI Japan ETF (EWJ) 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 EWJ and USO?
Across a 3-year window, the weekly returns of EWJ and USO correlate at -0.25, negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.53) than the 3-year average (-0.25). Stretching to 5 years gives -0.09, with an annualized covariance of -197.0 %².
Out of 70 assets tracked against EWJ, USO lands near the bottom at #67. Their recent paths diverged sharply: over the last 12 months USO outperformed by 47.0 percentage points (+27.1% for EWJ against +74.1% for USO). The relationship is regime-dependent: the rolling one-year correlation swung between -0.56 and 0.35 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: USO runs 2.0 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.
EWJ vs USO: side by side
| EWJ (iShares MSCI Japan ETF) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +27.1% | +74.1% |
| 5-year return | +58.6% | +168.6% |
| Volatility (ann.) | 19.6% | 39.4% |
| Beta vs S&P 500 | 0.94 | -0.20 |
| Max drawdown (3Y) | -14.7% | -32.5% |
| Dividend yield | 3.86% | – |
| Expense ratio | 0.49% | – |
| Assets under management | $21.8B | – |
| Sector / category | ETF · International | ETF · Commodities |
On the fund side, EWJ sits in the Japan Stock category at iShares, with $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield.
Year-by-year returns
| Year | EWJ | USO |
|---|---|---|
| 2022 | -17.7% | +29.0% |
| 2023 | +20.3% | -4.9% |
| 2024 | +7.0% | +13.4% |
| 2025 | +25.8% | -8.5% |
| 2026 | +19.3% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ 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 EWJ and USO?
As of 2026-08-27, the correlation of weekly returns between EWJ and USO is -0.25 over 3 years, -0.53 over 1 year and -0.09 over 5 years.
Is USO a good diversifier for EWJ?
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?
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/ewj-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ewj-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EWJ correlations · USO correlations
