KMT vs MDY: Correlation
Measured on weekly returns over the past three years, Kennametal Inc. (KMT) and SPDR S&P MidCap 400 ETF (MDY) carry a correlation of 0.60, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KMT and MDY?
On 3 years of weekly data the KMT/MDY correlation comes out at 0.60, strong. Lately the two have drifted apart, with the 1-year correlation at 0.47 versus 0.60 over 3 years. The 5-year figure is 0.69, and annualized covariance runs at 337.4 %².
Among the 21 assets we track against KMT, MDY ranks #4 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months KMT outperformed by 25.0 percentage points (+43.3% for KMT against +18.3% for MDY). Note the risk asymmetry: KMT runs 2.1 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.
KMT vs MDY: side by side
| KMT (Kennametal Inc.) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +43.3% | +18.3% |
| 5-year return | -6.6% | +47.5% |
| Volatility (ann.) | 33.9% | 16.5% |
| Beta vs S&P 500 | 0.73 | 0.91 |
| Max drawdown (3Y) | -42.9% | -24.0% |
| Market cap | $2.3B | – |
| P/E (trailing) | 6.8 | – |
| Dividend yield | 2.67% | 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 | KMT | MDY |
|---|---|---|
| 2022 | -31.0% | -13.3% |
| 2023 | +10.5% | +16.1% |
| 2024 | -3.9% | +13.6% |
| 2025 | +22.6% | +7.2% |
| 2026 | +8.1% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KMT and MDY good diversifiers for each other?
To a limited degree. At 0.60 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 KMT and MDY?
The KMT/MDY correlation stands at 0.60 on a 3-year window (1 year: 0.47, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is MDY a good diversifier for KMT?
To a limited degree. At 0.60 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 0.60 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: KMT correlations · MDY correlations
