IP vs XLB: Correlation
International Paper (IP) and Materials Select Sector SPDR Fund (XLB) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IP and XLB?
On 3 years of weekly data the IP/XLB correlation comes out at 0.56, moderate. Lately the two have moved closer together, with the 1-year correlation at 0.70 versus 0.56 over 3 years. The 5-year figure is 0.57, and annualized covariance runs at 354.6 %².
Among the 29 assets we track against IP, XLB ranks #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLB ahead by 31.1 points (-13.5% versus +17.6%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.15 and 0.78 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: IP is 2.3 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 XLB: side by side
| IP (International Paper) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -13.5% | +17.6% |
| 5-year return | -11.2% | +36.9% |
| Volatility (ann.) | 37.8% | 16.7% |
| Beta vs S&P 500 | 0.77 | 0.72 |
| Max drawdown (3Y) | -48.6% | -23.2% |
| Market cap | $21.1B | – |
| P/E (trailing) | – | – |
| Dividend yield | 4.47% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | Materials | Sector ETF |
XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Year-by-year returns
| Year | IP | XLB |
|---|---|---|
| 2022 | -23.0% | -12.3% |
| 2023 | +10.2% | +12.5% |
| 2024 | +55.3% | +0.1% |
| 2025 | -23.8% | +9.9% |
| 2026 | +5.0% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
IP represents 2.86% of XLB's portfolio, so part of any move in XLB is IP itself, and the correlation between them is partly mechanical.
Are IP and XLB good diversifiers for each other?
Only partially. A correlation of 0.56 means IP and XLB 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 XLB?
The IP/XLB correlation stands at 0.56 on a 3-year window (1 year: 0.70, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for IP?
Only partially. A correlation of 0.56 means IP and XLB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.56 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: IP correlations · XLB correlations
