A system for correcting a second order intermodulation product in a direct conversion receiver is provided. The system includes a cross-covariance system receiving a data signal and a second order intermodulation estimate signal and generating a cross-covariance value. An auto-covariance system receives the second order intermodulation estimate signal and generates an auto covariance value. A buffer system stores a second order intermodulation product correction factor. A divider receives the cross-covariance value, the auto-covariance value and the second order intermodulation product correction factor and generates a running average second order intermodulation product correction factor.