SHY vs USO: Correlation
iShares 1-3 Year Treasury Bond ETF (SHY) and United States Oil Fund (USO) show a negative relationship: their 3-year correlation of weekly returns is -0.31.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SHY and USO?
Over the past 3 years, SHY and USO moved with a correlation of -0.31, which is negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.53) runs below the 3-year figure (-0.31). Over 5 years the correlation is -0.19, and the annualized covariance of weekly returns is -19.0 %².
Out of 62 assets tracked against SHY, USO lands near the bottom at #60. The last year tells two different stories: USO led by 71.6 percentage points, +2.5% for SHY against +74.1% for USO. The rolling one-year correlation moved between -0.53 and -0.11 over the past three years, a moderate range. Risk is not evenly split, since USO carries 24.6 times the volatility of the other side.
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.
SHY vs USO: side by side
| SHY (iShares 1-3 Year Treasury Bond ETF) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +2.5% | +74.1% |
| 5-year return | +9.6% | +168.6% |
| Volatility (ann.) | 1.6% | 39.4% |
| Beta vs S&P 500 | 0.00 | -0.20 |
| Max drawdown (3Y) | -1.0% | -32.5% |
| Dividend yield | 3.65% | – |
| Expense ratio | 0.15% | – |
| Assets under management | $25.1B | – |
| Sector / category | ETF · Bonds | ETF · Commodities |
On the fund side, SHY sits in the Short Government category at iShares, with $25.1B under management, a 0.15% expense ratio, a 3.65% trailing dividend yield.
Year-by-year returns
| Year | SHY | USO |
|---|---|---|
| 2022 | -3.9% | +29.0% |
| 2023 | +4.2% | -4.9% |
| 2024 | +3.9% | +13.4% |
| 2025 | +5.0% | -8.5% |
| 2026 | +1.1% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SHY and USO good diversifiers for each other?
Yes: at -0.31, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between SHY and USO?
Using weekly returns as of 2026-08-27: -0.31 over 3 years, with -0.53 over the last year and -0.19 over 5 years.
Is USO a good diversifier for SHY?
Yes: at -0.31, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.31 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/shy-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/shy-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SHY correlations · USO correlations
