FANG vs TLT: Correlation
Measured on weekly returns over the past three years, Diamondback Energy (FANG) and iShares 20+ Year Treasury Bond ETF (TLT) carry a correlation of -0.27, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FANG and TLT?
Across a 3-year window, the weekly returns of FANG and TLT correlate at -0.27, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.56) runs below the 3-year figure (-0.27). Stretching to 5 years gives -0.25, with an annualized covariance of -123.3 %².
TLT is close to the least connected end of FANG's tracked universe, ranking #38 of 41. Correlation aside, the last 12 months split them widely, with FANG ahead by 39.3 points (+39.6% versus +0.3%). This link changes with the market regime, having swung between -0.53 and 0.02 on a rolling one-year basis. Note the risk asymmetry: FANG runs 2.5 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.
FANG vs TLT: side by side
| FANG (Diamondback Energy) | TLT (iShares 20+ Year Treasury Bond ETF) | |
|---|---|---|
| 1-year return | +39.6% | +0.3% |
| 5-year return | +224.9% | -34.0% |
| Volatility (ann.) | 34.1% | 13.5% |
| Beta vs S&P 500 | 0.32 | 0.11 |
| Max drawdown (3Y) | -42.1% | -14.8% |
| Market cap | $56.1B | – |
| P/E (trailing) | 38.0 | – |
| Dividend yield | 2.13% | 4.75% |
| Expense ratio | – | 0.15% |
| Assets under management | – | $41.5B |
| Sector / category | Energy | ETF · Bonds |
On the fund side, TLT sits in the Long Government category at iShares, with $41.5B under management, a 0.15% expense ratio, a 4.75% trailing dividend yield.
Year-by-year returns
| Year | FANG | TLT |
|---|---|---|
| 2022 | +35.3% | -31.2% |
| 2023 | +19.7% | +2.8% |
| 2024 | +10.3% | -8.1% |
| 2025 | -5.6% | +4.2% |
| 2026 | +35.7% | -2.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FANG and TLT good diversifiers for each other?
Yes. With a correlation of -0.27, FANG and TLT have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between FANG and TLT?
Using weekly returns as of 2026-08-27: -0.27 over 3 years, with -0.56 over the last year and -0.25 over 5 years.
Is TLT a good diversifier for FANG?
Yes. With a correlation of -0.27, FANG and TLT have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.27 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fang-vs-tlt.json
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[](https://www.pairbook.io/pair/fang-vs-tlt/)
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Hubs: FANG correlations · TLT correlations
