SHY vs VLO: Correlation
iShares 1-3 Year Treasury Bond ETF (SHY) and Valero Energy (VLO) show a negative relationship: their 3-year correlation of weekly returns is -0.22.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SHY and VLO?
On 3 years of weekly data the SHY/VLO correlation comes out at -0.22, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.25 over 1 year against -0.22 over 3. The 5-year figure is -0.17, and annualized covariance runs at -12.0 %².
Within SHY's tracked universe of 62 assets, VLO comes in at #29 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months VLO outperformed by 132.3 percentage points (+2.5% for SHY against +134.8% for VLO). On a rolling one-year basis the correlation drifted between -0.47 and -0.03, a moderate band. Note the risk asymmetry: VLO runs 21.7 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 VLO: side by side
| SHY (iShares 1-3 Year Treasury Bond ETF) | VLO (Valero Energy) | |
|---|---|---|
| 1-year return | +2.5% | +134.8% |
| 5-year return | +9.6% | +512.9% |
| Volatility (ann.) | 1.6% | 34.8% |
| Beta vs S&P 500 | 0.00 | 0.55 |
| Max drawdown (3Y) | -1.0% | -41.2% |
| Market cap | – | $99.8B |
| P/E (trailing) | – | 14.5 |
| Dividend yield | 3.65% | 1.34% |
| Expense ratio | 0.15% | – |
| Assets under management | $25.1B | – |
| Sector / category | ETF · Bonds | Energy |
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 | SHY | VLO |
|---|---|---|
| 2022 | -3.9% | +75.0% |
| 2023 | +4.2% | +5.9% |
| 2024 | +3.9% | -3.0% |
| 2025 | +5.0% | +37.0% |
| 2026 | +1.1% | +116.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SHY and VLO good diversifiers for each other?
By historical standards, yes. A correlation of -0.22 means the two rarely move for the same reasons.
FAQ
What is the correlation between SHY and VLO?
The SHY/VLO correlation stands at -0.22 on a 3-year window (1 year: -0.25, 5 years: -0.17), computed from weekly returns as of 2026-08-27.
Is VLO a good diversifier for SHY?
By historical standards, yes. A correlation of -0.22 means the two rarely move for the same reasons.
What does a correlation of -0.22 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 · VLO correlations
