DRI vs MDY: Correlation
Darden Restaurants (DRI) and SPDR S&P MidCap 400 ETF (MDY) show a moderate relationship: their 3-year correlation of weekly returns is 0.43.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DRI and MDY?
Across a 3-year window, the weekly returns of DRI and MDY correlate at 0.43, moderate. The link has tightened recently: the 1-year correlation (0.60) runs above the 3-year figure (0.43). Stretching to 5 years gives 0.51, with an annualized covariance of 177.8 %².
Within DRI's tracked universe of 34 assets, MDY comes in at #12 by 3-year correlation. On 12-month performance MDY holds a 12.7-point edge, +5.6% against +18.3%. Across three years, the rolling one-year figure varied moderately, from 0.18 to 0.60. One caveat on sizing: DRI is 1.5 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.
DRI vs MDY: side by side
| DRI (Darden Restaurants) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +5.6% | +18.3% |
| 5-year return | +66.1% | +47.5% |
| Volatility (ann.) | 25.2% | 16.5% |
| Beta vs S&P 500 | 0.52 | 0.91 |
| Max drawdown (3Y) | -23.9% | -24.0% |
| Market cap | $24.0B | – |
| P/E (trailing) | 21.0 | – |
| Dividend yield | 2.74% | 1.02% |
| Expense ratio | – | 0.23% |
| Assets under management | – | $26.5B |
| Sector / category | Consumer Discretionary | ETF · US Small & Mid Cap |
MDY, State Street Investment Management's Mid-Cap Blend fund, carries $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield.
Year-by-year returns
| Year | DRI | MDY |
|---|---|---|
| 2022 | -4.8% | -13.3% |
| 2023 | +22.8% | +16.1% |
| 2024 | +17.7% | +13.6% |
| 2025 | +1.6% | +7.2% |
| 2026 | +17.4% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DRI and MDY good diversifiers for each other?
Reasonably. At 0.43, DRI and MDY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between DRI and MDY?
Using weekly returns as of 2026-08-27: 0.43 over 3 years, with 0.60 over the last year and 0.51 over 5 years.
Is MDY a good diversifier for DRI?
Reasonably. At 0.43, DRI and MDY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.43 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.
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Related comparisons
Hubs: DRI correlations · MDY correlations
