IOSP vs SCL: Correlation
How closely do Innospec Inc. (IOSP) and Stepan Company (SCL) trade together? Their weekly returns over three years give a correlation of 0.69, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IOSP and SCL?
On 3 years of weekly data the IOSP/SCL correlation comes out at 0.69, strong. The relationship has been stable: the 1-year correlation (0.65) sits close to the 3-year figure. The 5-year figure is 0.68, and annualized covariance runs at 666.5 %².
By 3-year correlation, SCL places #7 of the 35 assets tracked against IOSP. Over the last 12 months SCL came out ahead by 14.9 percentage points (+11.3% against +26.2%).
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.
IOSP vs SCL: side by side
| IOSP (Innospec Inc.) | SCL (Stepan Company) | |
|---|---|---|
| 1-year return | +11.3% | +26.2% |
| 5-year return | +10.2% | -40.5% |
| Volatility (ann.) | 26.6% | 36.4% |
| Beta vs S&P 500 | 0.94 | 0.93 |
| Max drawdown (3Y) | -48.4% | -54.0% |
| Market cap | $2.3B | $1.4B |
| P/E (trailing) | 19.5 | – |
| Dividend yield | 1.87% | 2.51% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | IOSP | SCL |
|---|---|---|
| 2022 | +15.2% | -13.2% |
| 2023 | +21.5% | -9.7% |
| 2024 | -9.6% | -30.3% |
| 2025 | -28.9% | -24.6% |
| 2026 | +26.0% | +34.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IOSP and SCL good diversifiers for each other?
Only partially. A correlation of 0.69 means IOSP and SCL 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 IOSP and SCL?
The IOSP/SCL correlation stands at 0.69 on a 3-year window (1 year: 0.65, 5 years: 0.68), computed from weekly returns as of 2026-08-27.
Is SCL a good diversifier for IOSP?
Only partially. A correlation of 0.69 means IOSP and SCL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.69 mean?
On the −1 to +1 scale, 0.69 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/iosp-vs-scl.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iosp-vs-scl/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IOSP correlations · SCL correlations
