IEF vs TALO: Correlation
Measured on weekly returns over the past three years, iShares 7-10 Year Treasury Bond ETF (IEF) and Talos Energy, Inc. (TALO) carry a correlation of -0.23, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEF and TALO?
On 3 years of weekly data the IEF/TALO correlation comes out at -0.23, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.51 versus -0.23 over 3 years. The 5-year figure is -0.11, and annualized covariance runs at -67.9 %².
By 3-year correlation, TALO places #27 of the 48 assets tracked against IEF. Correlation aside, the last 12 months split them widely, with TALO ahead by 74.3 points (+0.9% versus +75.2%). One caveat on sizing: TALO is 6.9 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.
IEF vs TALO: side by side
| IEF (iShares 7-10 Year Treasury Bond ETF) | TALO (Talos Energy, Inc.) | |
|---|---|---|
| 1-year return | +0.9% | +75.2% |
| 5-year return | -7.9% | +37.6% |
| Volatility (ann.) | 6.5% | 45.1% |
| Beta vs S&P 500 | 0.04 | 0.35 |
| Max drawdown (3Y) | -6.9% | -63.2% |
| Market cap | – | $2.8B |
| P/E (trailing) | – | – |
| Dividend yield | 3.96% | 0.00% |
| Expense ratio | 0.15% | – |
| Assets under management | $47.2B | – |
| Sector / category | ETF · Bonds | US Listed |
On the fund side, IEF sits in the Long Government category at iShares, with $47.2B under management, a 0.15% expense ratio, a 3.96% trailing dividend yield.
Year-by-year returns
| Year | IEF | TALO |
|---|---|---|
| 2022 | -15.2% | +92.7% |
| 2023 | +3.6% | -24.6% |
| 2024 | -0.6% | -31.8% |
| 2025 | +8.0% | +13.5% |
| 2026 | -0.8% | +51.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEF and TALO good diversifiers for each other?
Yes: at -0.23, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between IEF and TALO?
The IEF/TALO correlation stands at -0.23 on a 3-year window (1 year: -0.51, 5 years: -0.11), computed from weekly returns as of 2026-08-27.
Is TALO a good diversifier for IEF?
Yes: at -0.23, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.23 mean?
On the −1 to +1 scale, -0.23 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.
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Related comparisons
Hubs: IEF correlations · TALO correlations
