USO vs XBI: Correlation
How closely do United States Oil Fund (USO) and SPDR S&P Biotech ETF (XBI) trade together? Their weekly returns over three years give a correlation of -0.16, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USO and XBI?
Across a 3-year window, the weekly returns of USO and XBI correlate at -0.16, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.47) runs below the 3-year figure (-0.16). Stretching to 5 years gives -0.13, with an annualized covariance of -169.2 %².
Among the 165 assets we track against USO, XBI ranks #34 by 3-year correlation. The trailing year gives XBI the advantage: +74.1% versus +87.2%, a 13.1-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.48 to 0.18.
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 XBI: side by side
| USO (United States Oil Fund) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +74.1% | +87.2% |
| 5-year return | +168.6% | +28.6% |
| Volatility (ann.) | 39.4% | 27.7% |
| Beta vs S&P 500 | -0.20 | 1.09 |
| Max drawdown (3Y) | -32.5% | -33.0% |
| Sector / category | ETF · Commodities | ETF · Thematic |
Year-by-year returns
| Year | USO | XBI |
|---|---|---|
| 2022 | +29.0% | -25.9% |
| 2023 | -4.9% | +7.6% |
| 2024 | +13.4% | +1.0% |
| 2025 | -8.5% | +35.9% |
| 2026 | +88.0% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USO and XBI good diversifiers for each other?
Yes: at -0.16, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between USO and XBI?
As of 2026-08-27, the correlation of weekly returns between USO and XBI is -0.16 over 3 years, -0.47 over 1 year and -0.13 over 5 years.
Is XBI a good diversifier for USO?
Yes: at -0.16, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.16 mean?
A reading of -0.16 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 · XBI correlations
