IR vs USO: Correlation
Measured on weekly returns over the past three years, Ingersoll Rand (IR) and United States Oil Fund (USO) carry a correlation of -0.18, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IR and USO?
On 3 years of weekly data the IR/USO correlation comes out at -0.18, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.44) runs below the 3-year figure (-0.18). The 5-year figure is -0.06, and annualized covariance runs at -205.8 %².
USO is close to the least connected end of IR's tracked universe, ranking #57 of 61. The last year tells two different stories: USO led by 76.1 percentage points, -2.0% for IR against +74.1% for USO. This link changes with the market regime, having swung between -0.46 and 0.40 on a rolling one-year basis.
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.
IR vs USO: side by side
| IR (Ingersoll Rand) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | -2.0% | +74.1% |
| 5-year return | +49.2% | +168.6% |
| Volatility (ann.) | 29.8% | 39.4% |
| Beta vs S&P 500 | 1.17 | -0.20 |
| Max drawdown (3Y) | -36.6% | -32.5% |
| Market cap | $30.6B | – |
| P/E (trailing) | 32.6 | – |
| Dividend yield | 0.15% | – |
| Sector / category | Industrials | ETF · Commodities |
Year-by-year returns
| Year | IR | USO |
|---|---|---|
| 2022 | -15.4% | +29.0% |
| 2023 | +48.2% | -4.9% |
| 2024 | +17.1% | +13.4% |
| 2025 | -12.3% | -8.5% |
| 2026 | -0.2% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IR and USO good diversifiers for each other?
Yes. With a correlation of -0.18, IR and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between IR and USO?
Using weekly returns as of 2026-08-27: -0.18 over 3 years, with -0.44 over the last year and -0.06 over 5 years.
Is USO a good diversifier for IR?
Yes. With a correlation of -0.18, IR and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.18 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/ir-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ir-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IR correlations · USO correlations
