IP vs USO: Correlation
How closely do International Paper (IP) and United States Oil Fund (USO) trade together? Their weekly returns over three years give a correlation of -0.18, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IP and USO?
On 3 years of weekly data the IP/USO correlation comes out at -0.18, negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.38) than the 3-year average (-0.18). The 5-year figure is -0.09, and annualized covariance runs at -270.7 %².
Among the 29 assets we track against IP, USO ranks #23 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months USO outperformed by 87.6 percentage points (-13.5% for IP against +74.1% for USO). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.47 to 0.44.
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 USO: side by side
| IP (International Paper) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | -13.5% | +74.1% |
| 5-year return | -11.2% | +168.6% |
| Volatility (ann.) | 37.8% | 39.4% |
| Beta vs S&P 500 | 0.77 | -0.20 |
| Max drawdown (3Y) | -48.6% | -32.5% |
| Market cap | $21.1B | – |
| P/E (trailing) | – | – |
| Dividend yield | 4.47% | – |
| Sector / category | Materials | ETF · Commodities |
Year-by-year returns
| Year | IP | USO |
|---|---|---|
| 2022 | -23.0% | +29.0% |
| 2023 | +10.2% | -4.9% |
| 2024 | +55.3% | +13.4% |
| 2025 | -23.8% | -8.5% |
| 2026 | +5.0% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IP and USO good diversifiers for each other?
Yes: at -0.18, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between IP and USO?
Using weekly returns as of 2026-08-27: -0.18 over 3 years, with -0.38 over the last year and -0.09 over 5 years.
Is USO a good diversifier for IP?
Yes: at -0.18, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.18 mean?
On the −1 to +1 scale, -0.18 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-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ip-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IP correlations · USO correlations
