IP vs PKG: Correlation
How closely do International Paper (IP) and Packaging Corporation of America (PKG) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IP and PKG?
On 3 years of weekly data the IP/PKG correlation comes out at 0.72, strong. The relationship has been stable: the 1-year correlation (0.75) sits close to the 3-year figure. The 5-year figure is 0.73, and annualized covariance runs at 639.7 %².
PKG is one of the assets that tracks IP most closely: it ranks #2 out of the 29 assets we track against IP. The last year tells two different stories: PKG led by 32.0 percentage points, -13.5% for IP against +18.5% for PKG. On a rolling one-year basis the correlation drifted between 0.53 and 0.90, a moderate band. One caveat on sizing: IP is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
IP vs PKG: side by side
| IP (International Paper) | PKG (Packaging Corporation of America) | |
|---|---|---|
| 1-year return | -13.5% | +18.5% |
| 5-year return | -11.2% | +86.8% |
| Volatility (ann.) | 37.8% | 23.5% |
| Beta vs S&P 500 | 0.77 | 0.52 |
| Max drawdown (3Y) | -48.6% | -28.4% |
| Market cap | $21.1B | $21.7B |
| P/E (trailing) | – | 31.6 |
| Dividend yield | 4.47% | 2.13% |
| Sector / category | Materials | Materials |
Year-by-year returns
| Year | IP | PKG |
|---|---|---|
| 2022 | -23.0% | -2.6% |
| 2023 | +10.2% | +31.9% |
| 2024 | +55.3% | +41.7% |
| 2025 | -23.8% | -6.1% |
| 2026 | +5.0% | +19.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IP and PKG good diversifiers for each other?
Only partially. A correlation of 0.72 means IP and PKG 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 IP and PKG?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.75 over the last year and 0.73 over 5 years.
Is PKG a good diversifier for IP?
Only partially. A correlation of 0.72 means IP and PKG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
On the −1 to +1 scale, 0.72 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/ip-vs-pkg.json
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Related comparisons
Hubs: IP correlations · PKG correlations
