HD vs MDY: Correlation
Home Depot (The) (HD) and SPDR S&P MidCap 400 ETF (MDY) show a strong relationship: their 3-year correlation of weekly returns is 0.69.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HD and MDY?
Across a 3-year window, the weekly returns of HD and MDY correlate at 0.69, strong. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. Stretching to 5 years gives 0.64, with an annualized covariance of 267.3 %².
By 3-year correlation, MDY places #12 of the 54 assets tracked against HD. The last year tells two different stories: MDY led by 35.7 percentage points, -17.4% for HD against +18.3% for MDY. The link looks structural: the rolling one-year correlation barely moved, holding between 0.60 and 0.79.
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.
HD vs MDY: side by side
| HD (Home Depot (The)) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | -17.4% | +18.3% |
| 5-year return | +13.8% | +47.5% |
| Volatility (ann.) | 23.6% | 16.5% |
| Beta vs S&P 500 | 0.87 | 0.91 |
| Max drawdown (3Y) | -28.8% | -24.0% |
| Market cap | $327.9B | – |
| P/E (trailing) | 23.4 | – |
| Dividend yield | 1.38% | 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 | HD | MDY |
|---|---|---|
| 2022 | -22.0% | -13.3% |
| 2023 | +12.8% | +16.1% |
| 2024 | +15.0% | +13.6% |
| 2025 | -9.3% | +7.2% |
| 2026 | -3.1% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HD and MDY good diversifiers for each other?
To a limited degree. At 0.69 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 HD and MDY?
As of 2026-08-27, the correlation of weekly returns between HD and MDY is 0.69 over 3 years, 0.71 over 1 year and 0.64 over 5 years.
Is MDY a good diversifier for HD?
To a limited degree. At 0.69 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 0.69 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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Related comparisons
Hubs: HD correlations · MDY correlations
