SHY vs VET: Correlation
Measured on weekly returns over the past three years, iShares 1-3 Year Treasury Bond ETF (SHY) and Vermilion Energy Inc. Common (Canada) (VET) carry a correlation of -0.26, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SHY and VET?
On 3 years of weekly data the SHY/VET correlation comes out at -0.26, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.50 versus -0.26 over 3 years. The 5-year figure is -0.16, and annualized covariance runs at -17.4 %².
By 3-year correlation, VET places #46 of the 62 assets tracked against SHY. Their recent paths diverged sharply: over the last 12 months VET outperformed by 65.9 percentage points (+2.5% for SHY against +68.4% for VET). Note the risk asymmetry: VET runs 27.2 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.
SHY vs VET: side by side
| SHY (iShares 1-3 Year Treasury Bond ETF) | VET (Vermilion Energy Inc. Common (Canada)) | |
|---|---|---|
| 1-year return | +2.5% | +68.4% |
| 5-year return | +9.6% | +115.2% |
| Volatility (ann.) | 1.6% | 43.6% |
| Beta vs S&P 500 | 0.00 | 0.31 |
| Max drawdown (3Y) | -1.0% | -63.4% |
| Market cap | – | $1.9B |
| P/E (trailing) | – | – |
| Dividend yield | 3.65% | 4.32% |
| Expense ratio | 0.15% | – |
| Assets under management | $25.1B | – |
| Sector / category | ETF · Bonds | US Listed |
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 | VET |
|---|---|---|
| 2022 | -3.9% | +42.1% |
| 2023 | +4.2% | -30.3% |
| 2024 | +3.9% | -19.4% |
| 2025 | +5.0% | -9.1% |
| 2026 | +1.1% | +55.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SHY and VET good diversifiers for each other?
Yes. With a correlation of -0.26, SHY and VET have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between SHY and VET?
The SHY/VET correlation stands at -0.26 on a 3-year window (1 year: -0.50, 5 years: -0.16), computed from weekly returns as of 2026-08-27.
Is VET a good diversifier for SHY?
Yes. With a correlation of -0.26, SHY and VET have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.26 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.
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Related comparisons
Hubs: SHY correlations · VET correlations
