HWM vs MDY: Correlation
Measured on weekly returns over the past three years, Howmet Aerospace (HWM) and SPDR S&P MidCap 400 ETF (MDY) carry a correlation of 0.59, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HWM and MDY?
On 3 years of weekly data the HWM/MDY correlation comes out at 0.59, moderate. The relationship has been stable: the 1-year correlation (0.52) sits close to the 3-year figure. The 5-year figure is 0.65, and annualized covariance runs at 310.2 %².
Within HWM's tracked universe of 35 assets, MDY comes in at #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with HWM ahead by 34.4 points (+52.7% versus +18.3%). The rolling one-year correlation moved between 0.30 and 0.79 over the past three years, a moderate range. One caveat on sizing: HWM is 1.9 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.
HWM vs MDY: side by side
| HWM (Howmet Aerospace) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +52.7% | +18.3% |
| 5-year return | +754.4% | +47.5% |
| Volatility (ann.) | 32.1% | 16.5% |
| Beta vs S&P 500 | 1.24 | 0.91 |
| Max drawdown (3Y) | -19.4% | -24.0% |
| Market cap | $106.7B | – |
| P/E (trailing) | 58.2 | – |
| Dividend yield | 0.18% | 1.02% |
| Expense ratio | – | 0.23% |
| Assets under management | – | $26.5B |
| Sector / category | Industrials | 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 | HWM | MDY |
|---|---|---|
| 2022 | +24.2% | -13.3% |
| 2023 | +37.8% | +16.1% |
| 2024 | +102.7% | +13.6% |
| 2025 | +88.0% | +7.2% |
| 2026 | +30.7% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HWM and MDY good diversifiers for each other?
Only partially. A correlation of 0.59 means HWM 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 HWM and MDY?
The HWM/MDY correlation stands at 0.59 on a 3-year window (1 year: 0.52, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is MDY a good diversifier for HWM?
Only partially. A correlation of 0.59 means HWM 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 0.59 mean?
A reading of 0.59 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: HWM correlations · MDY correlations
