HLI vs MDY: Correlation
Measured on weekly returns over the past three years, Houlihan Lokey, Inc. (HLI) and SPDR S&P MidCap 400 ETF (MDY) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HLI and MDY?
Over the past 3 years, HLI and MDY moved with a correlation of 0.68, which is strong. Recent behaviour matches the longer record: 0.62 over 1 year against 0.68 over 3. Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 287.8 %².
By 3-year correlation, MDY places #5 of the 15 assets tracked against HLI. The last year tells two different stories: MDY led by 52.0 percentage points, -33.7% for HLI against +18.3% for MDY. Note the risk asymmetry: HLI runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
HLI vs MDY: side by side
| HLI (Houlihan Lokey, Inc.) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | -33.7% | +18.3% |
| 5-year return | +58.6% | +47.5% |
| Volatility (ann.) | 25.5% | 16.5% |
| Beta vs S&P 500 | 0.95 | 0.91 |
| Max drawdown (3Y) | -40.3% | -24.0% |
| Market cap | $9.1B | – |
| P/E (trailing) | 21.8 | – |
| Dividend yield | 1.93% | 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 | HLI | MDY |
|---|---|---|
| 2022 | -13.9% | -13.3% |
| 2023 | +40.7% | +16.1% |
| 2024 | +47.0% | +13.6% |
| 2025 | +1.6% | +7.2% |
| 2026 | -24.3% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.19% of MDY is HLI itself, so the fund partly moves with the stock by construction.
Are HLI and MDY good diversifiers for each other?
Only partially. A correlation of 0.68 means HLI and MDY 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 HLI and MDY?
The HLI/MDY correlation stands at 0.68 on a 3-year window (1 year: 0.62, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is MDY a good diversifier for HLI?
Only partially. A correlation of 0.68 means HLI and MDY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.68 mean?
On the −1 to +1 scale, 0.68 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: HLI correlations · MDY correlations
