ESAB vs MDY: Correlation
How closely do ESAB Corporation (ESAB) and SPDR S&P MidCap 400 ETF (MDY) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESAB and MDY?
Across a 3-year window, the weekly returns of ESAB and MDY correlate at 0.66, strong. The relationship has been stable: the 1-year correlation (0.66) sits close to the 3-year figure. Stretching to 5 years gives 0.64, with an annualized covariance of 392.2 %².
Few assets follow ESAB as closely as MDY, which ranks #2 of 13 tracked partners. Their recent paths diverged sharply: over the last 12 months MDY outperformed by 50.8 percentage points (-32.5% for ESAB against +18.3% for MDY). One caveat on sizing: ESAB is 2.2 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.
ESAB vs MDY: side by side
| ESAB (ESAB Corporation) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | -32.5% | +18.3% |
| 5-year return | +60.4% | +47.5% |
| Volatility (ann.) | 36.3% | 16.5% |
| Beta vs S&P 500 | 1.30 | 0.91 |
| Max drawdown (3Y) | -41.6% | -24.0% |
| Market cap | $4.9B | – |
| P/E (trailing) | 25.8 | – |
| Dividend yield | 0.51% | 1.02% |
| Expense ratio | – | 0.23% |
| Assets under management | – | $26.5B |
| Sector / category | US Listed | 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 | ESAB | MDY |
|---|---|---|
| 2022 | – | -13.3% |
| 2023 | +85.2% | +16.1% |
| 2024 | +38.9% | +13.6% |
| 2025 | -6.5% | +7.2% |
| 2026 | -29.1% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
ESAB represents 0.13% of MDY's portfolio, so part of any move in MDY is ESAB itself, and the correlation between them is partly mechanical.
Are ESAB and MDY good diversifiers for each other?
To a limited degree. At 0.66 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ESAB and MDY?
As of 2026-08-27, the correlation of weekly returns between ESAB and MDY is 0.66 over 3 years, 0.66 over 1 year and 0.64 over 5 years.
Is MDY a good diversifier for ESAB?
To a limited degree. At 0.66 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.66 mean?
A reading of 0.66 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: ESAB correlations · MDY correlations
