USO vs XLP: Correlation
Measured on weekly returns over the past three years, United States Oil Fund (USO) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of -0.20, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USO and XLP?
On 3 years of weekly data the USO/XLP correlation comes out at -0.20, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.25 lands near the 3-year figure. The 5-year figure is -0.08, and annualized covariance runs at -86.2 %².
By 3-year correlation, XLP places #57 of the 165 assets tracked against USO. Their recent paths diverged sharply: over the last 12 months USO outperformed by 65.8 percentage points (+74.1% for USO against +8.3% for XLP). This link changes with the market regime, having swung between -0.43 and 0.07 on a rolling one-year basis. Note the risk asymmetry: USO runs 3.5 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.
USO vs XLP: side by side
| USO (United States Oil Fund) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +74.1% | +8.3% |
| 5-year return | +168.6% | +34.7% |
| Volatility (ann.) | 39.4% | 11.1% |
| Beta vs S&P 500 | -0.20 | 0.23 |
| Max drawdown (3Y) | -32.5% | -9.7% |
| Dividend yield | – | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | ETF · Commodities | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | USO | XLP |
|---|---|---|
| 2022 | +29.0% | -0.8% |
| 2023 | -4.9% | -0.8% |
| 2024 | +13.4% | +12.2% |
| 2025 | -8.5% | +1.5% |
| 2026 | +88.0% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USO and XLP good diversifiers for each other?
By historical standards, yes. A correlation of -0.20 means the two rarely move for the same reasons.
FAQ
What is the correlation between USO and XLP?
The USO/XLP correlation stands at -0.20 on a 3-year window (1 year: -0.25, 5 years: -0.08), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for USO?
By historical standards, yes. A correlation of -0.20 means the two rarely move for the same reasons.
What does a correlation of -0.20 mean?
On the −1 to +1 scale, -0.20 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/uso-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/uso-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: USO correlations · XLP correlations
