HYG vs USO: Correlation
Measured on weekly returns over the past three years, iShares iBoxx High Yield Corporate Bond ETF (HYG) and United States Oil Fund (USO) carry a correlation of -0.13, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HYG and USO?
Across a 3-year window, the weekly returns of HYG and USO correlate at -0.13, negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.36) than the 3-year average (-0.13). Stretching to 5 years gives 0.00, with an annualized covariance of -23.3 %².
Among the 46 assets we track against HYG, USO ranks #39 by 3-year correlation. The last year tells two different stories: USO led by 69.5 percentage points, +4.6% for HYG against +74.1% for USO. This link changes with the market regime, having swung between -0.36 and 0.25 on a rolling one-year basis. One caveat on sizing: USO is 8.4 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.
HYG vs USO: side by side
| HYG (iShares iBoxx High Yield Corporate Bond ETF) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +4.6% | +74.1% |
| 5-year return | +19.9% | +168.6% |
| Volatility (ann.) | 4.7% | 39.4% |
| Beta vs S&P 500 | 0.22 | -0.20 |
| Max drawdown (3Y) | -4.6% | -32.5% |
| Dividend yield | 5.94% | – |
| Expense ratio | 0.49% | – |
| Assets under management | $17.1B | – |
| Sector / category | ETF · Bonds | ETF · Commodities |
HYG, iShares's High Yield Bond fund, carries $17.1B under management, a 0.49% expense ratio, a 5.94% trailing dividend yield.
Year-by-year returns
| Year | HYG | USO |
|---|---|---|
| 2022 | -11.0% | +29.0% |
| 2023 | +11.5% | -4.9% |
| 2024 | +8.0% | +13.4% |
| 2025 | +8.6% | -8.5% |
| 2026 | +2.5% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HYG and USO good diversifiers for each other?
Yes: at -0.13, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between HYG and USO?
Using weekly returns as of 2026-08-27: -0.13 over 3 years, with -0.36 over the last year and 0.00 over 5 years.
Is USO a good diversifier for HYG?
Yes: at -0.13, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.13 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/hyg-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hyg-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: HYG correlations · USO correlations
