IP vs SPY: Correlation
How closely do International Paper (IP) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.29, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IP and SPY?
Across a 3-year window, the weekly returns of IP and SPY correlate at 0.29, weak. Lately the two have drifted apart, with the 1-year correlation at 0.14 versus 0.29 over 3 years. Stretching to 5 years gives 0.38, with an annualized covariance of 159.9 %².
By 3-year correlation, SPY places #18 of the 29 assets tracked against IP. The last year tells two different stories: SPY led by 34.1 percentage points, -13.5% for IP against +20.6% for SPY. This link changes with the market regime, having swung between 0.11 and 0.64 on a rolling one-year basis. Risk is not evenly split, since IP carries 2.6 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.
IP vs SPY: side by side
| IP (International Paper) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -13.5% | +20.6% |
| 5-year return | -11.2% | +82.4% |
| Volatility (ann.) | 37.8% | 14.5% |
| Beta vs S&P 500 | 0.77 | 1.00 |
| Max drawdown (3Y) | -48.6% | -18.8% |
| Market cap | $21.1B | – |
| P/E (trailing) | – | – |
| Dividend yield | 4.47% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Materials | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | IP | SPY |
|---|---|---|
| 2022 | -23.0% | -18.2% |
| 2023 | +10.2% | +26.2% |
| 2024 | +55.3% | +24.9% |
| 2025 | -23.8% | +17.7% |
| 2026 | +5.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IP and SPY good diversifiers for each other?
A fair diversifier. At 0.29, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between IP and SPY?
Using weekly returns as of 2026-08-27: 0.29 over 3 years, with 0.14 over the last year and 0.38 over 5 years.
Is SPY a good diversifier for IP?
A fair diversifier. At 0.29, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.29 mean?
On the −1 to +1 scale, 0.29 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.
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Related comparisons
Hubs: IP correlations · SPY correlations
