SM vs USO: Correlation
How closely do SM Energy Company (SM) and United States Oil Fund (USO) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SM and USO?
Across a 3-year window, the weekly returns of SM and USO correlate at 0.64, strong. Little has changed lately, as the 1-year reading of 0.66 lands near the 3-year figure. Stretching to 5 years gives 0.67, with an annualized covariance of 1204.5 %².
By 3-year correlation, USO places #12 of the 21 assets tracked against SM. Correlation aside, the last 12 months split them widely, with USO ahead by 38.0 points (+36.1% versus +74.1%).
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.
SM vs USO: side by side
| SM (SM Energy Company) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +36.1% | +74.1% |
| 5-year return | +114.6% | +168.6% |
| Volatility (ann.) | 47.6% | 39.4% |
| Beta vs S&P 500 | 0.44 | -0.20 |
| Max drawdown (3Y) | -64.9% | -32.5% |
| Market cap | $8.8B | – |
| P/E (trailing) | 6.3 | – |
| Dividend yield | 2.32% | – |
| Sector / category | US Listed | ETF · Commodities |
Year-by-year returns
| Year | SM | USO |
|---|---|---|
| 2022 | +18.6% | +29.0% |
| 2023 | +13.1% | -4.9% |
| 2024 | +1.8% | +13.4% |
| 2025 | -49.7% | -8.5% |
| 2026 | +99.9% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SM and USO good diversifiers for each other?
To a limited degree. At 0.64 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between SM and USO?
As of 2026-08-27, the correlation of weekly returns between SM and USO is 0.64 over 3 years, 0.66 over 1 year and 0.67 over 5 years.
Is USO a good diversifier for SM?
To a limited degree. At 0.64 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.64 mean?
A reading of 0.64 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/sm-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/sm-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SM correlations · USO correlations
