LYB vs SHY: Correlation
Measured on weekly returns over the past three years, LyondellBasell (LYB) and iShares 1-3 Year Treasury Bond ETF (SHY) 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 LYB and SHY?
On 3 years of weekly data the LYB/SHY correlation comes out at -0.18, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.29 versus -0.18 over 3 years. The 5-year figure is -0.10, and annualized covariance runs at -9.3 %².
Among the 36 assets we track against LYB, SHY ranks #30 by 3-year correlation. The last year tells two different stories: LYB led by 16.6 percentage points, +19.1% for LYB against +2.5% for SHY. Across three years, the rolling one-year figure varied moderately, from -0.36 to 0.10. Note the risk asymmetry: LYB runs 21.1 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.
LYB vs SHY: side by side
| LYB (LyondellBasell) | SHY (iShares 1-3 Year Treasury Bond ETF) | |
|---|---|---|
| 1-year return | +19.1% | +2.5% |
| 5-year return | -12.8% | +9.6% |
| Volatility (ann.) | 33.7% | 1.6% |
| Beta vs S&P 500 | 0.42 | 0.00 |
| Max drawdown (3Y) | -55.4% | -1.0% |
| Market cap | $20.4B | – |
| P/E (trailing) | – | – |
| Dividend yield | 6.58% | 3.65% |
| Expense ratio | – | 0.15% |
| Assets under management | – | $25.1B |
| Sector / category | Materials | ETF · Bonds |
SHY, iShares's Short Government fund, carries $25.1B under management, a 0.15% expense ratio, a 3.65% trailing dividend yield.
Year-by-year returns
| Year | LYB | SHY |
|---|---|---|
| 2022 | -1.0% | -3.9% |
| 2023 | +20.7% | +4.2% |
| 2024 | -17.4% | +3.9% |
| 2025 | -36.0% | +5.0% |
| 2026 | +50.5% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LYB and SHY good diversifiers for each other?
Yes: at -0.18, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between LYB and SHY?
As of 2026-08-27, the correlation of weekly returns between LYB and SHY is -0.18 over 3 years, -0.29 over 1 year and -0.10 over 5 years.
Is SHY a good diversifier for LYB?
Yes: at -0.18, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.18 mean?
On the −1 to +1 scale, -0.18 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/lyb-vs-shy.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/lyb-vs-shy/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LYB correlations · SHY correlations
