USO vs WTI: Correlation
How closely do United States Oil Fund (USO) and W&T Offshore, Inc. (WTI) 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 USO and WTI?
Across a 3-year window, the weekly returns of USO and WTI correlate at 0.64, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.65, with an annualized covariance of 1618.4 %².
By 3-year correlation, WTI places #8 of the 165 assets tracked against USO. The last year tells two different stories: WTI led by 30.8 percentage points, +74.1% for USO against +104.9% for WTI. Risk is not evenly split, since WTI carries 1.6 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.
USO vs WTI: side by side
| USO (United States Oil Fund) | WTI (W&T Offshore, Inc.) | |
|---|---|---|
| 1-year return | +74.1% | +104.9% |
| 5-year return | +168.6% | +18.8% |
| Volatility (ann.) | 39.4% | 64.6% |
| Beta vs S&P 500 | -0.20 | 0.24 |
| Max drawdown (3Y) | -32.5% | -74.3% |
| Market cap | – | $0.6B |
| P/E (trailing) | – | – |
| Dividend yield | – | 1.12% |
| Sector / category | ETF · Commodities | US Listed |
Year-by-year returns
| Year | USO | WTI |
|---|---|---|
| 2022 | +29.0% | +72.8% |
| 2023 | -4.9% | -41.4% |
| 2024 | +13.4% | -48.2% |
| 2025 | -8.5% | +0.6% |
| 2026 | +88.0% | +126.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USO and WTI good diversifiers for each other?
Only partially. A correlation of 0.64 means USO and WTI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between USO and WTI?
As of 2026-08-27, the correlation of weekly returns between USO and WTI is 0.64 over 3 years, 0.63 over 1 year and 0.65 over 5 years.
Is WTI a good diversifier for USO?
Only partially. A correlation of 0.64 means USO and WTI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
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.
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Related comparisons
Hubs: USO correlations · WTI correlations
