KWR vs MDY: Correlation
How closely do Quaker Houghton (KWR) and SPDR S&P MidCap 400 ETF (MDY) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KWR and MDY?
Across a 3-year window, the weekly returns of KWR and MDY correlate at 0.67, strong. The relationship has been stable: the 1-year correlation (0.67) sits close to the 3-year figure. Stretching to 5 years gives 0.69, with an annualized covariance of 376.7 %².
Within KWR's tracked universe of 20 assets, MDY comes in at #5 by 3-year correlation. Neither side won the trailing year by much: +15.1% against +18.3%. One caveat on sizing: KWR is 2.1 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.
KWR vs MDY: side by side
| KWR (Quaker Houghton) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +15.1% | +18.3% |
| 5-year return | -32.5% | +47.5% |
| Volatility (ann.) | 34.3% | 16.5% |
| Beta vs S&P 500 | 1.16 | 0.91 |
| Max drawdown (3Y) | -55.3% | -24.0% |
| Market cap | $2.8B | – |
| P/E (trailing) | 29.4 | – |
| Dividend yield | 1.24% | 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 | KWR | MDY |
|---|---|---|
| 2022 | -26.9% | -13.3% |
| 2023 | +29.1% | +16.1% |
| 2024 | -33.4% | +13.6% |
| 2025 | -0.8% | +7.2% |
| 2026 | +20.9% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KWR and MDY good diversifiers for each other?
To a limited degree. At 0.67 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 KWR and MDY?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.67 over the last year and 0.69 over 5 years.
Is MDY a good diversifier for KWR?
To a limited degree. At 0.67 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 0.67 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: KWR correlations · MDY correlations
