FANG vs USO: Correlation
Diamondback Energy (FANG) and United States Oil Fund (USO) show a strong relationship: their 3-year correlation of weekly returns is 0.63.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FANG and USO?
Across a 3-year window, the weekly returns of FANG and USO correlate at 0.63, strong. The relationship has been stable: the 1-year correlation (0.64) sits close to the 3-year figure. Stretching to 5 years gives 0.64, with an annualized covariance of 840.3 %².
Within FANG's tracked universe of 41 assets, USO comes in at #24 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months USO outperformed by 34.5 percentage points (+39.6% for FANG against +74.1% for USO). The rolling one-year correlation moved between 0.50 and 0.81 over the past three years, a moderate range.
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 USO: side by side
| FANG (Diamondback Energy) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +39.6% | +74.1% |
| 5-year return | +224.9% | +168.6% |
| Volatility (ann.) | 34.1% | 39.4% |
| Beta vs S&P 500 | 0.32 | -0.20 |
| Max drawdown (3Y) | -42.1% | -32.5% |
| Market cap | $56.1B | – |
| P/E (trailing) | 38.0 | – |
| Dividend yield | 2.13% | – |
| Sector / category | Energy | ETF · Commodities |
Year-by-year returns
| Year | FANG | USO |
|---|---|---|
| 2022 | +35.3% | +29.0% |
| 2023 | +19.7% | -4.9% |
| 2024 | +10.3% | +13.4% |
| 2025 | -5.6% | -8.5% |
| 2026 | +35.7% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FANG and USO good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between FANG and USO?
The FANG/USO correlation stands at 0.63 on a 3-year window (1 year: 0.64, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is USO a good diversifier for FANG?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.63 mean?
On the −1 to +1 scale, 0.63 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/fang-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fang-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: FANG correlations · USO correlations
