LCII vs MDY: Correlation
How closely do LCI Industries (LCII) and SPDR S&P MidCap 400 ETF (MDY) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LCII and MDY?
Over the past 3 years, LCII and MDY moved with a correlation of 0.63, which is strong. The past 12 months show a weaker link (0.38) than the 3-year average (0.63). Over 5 years the correlation is 0.67, and the annualized covariance of weekly returns is 356.3 %².
By 3-year correlation, MDY places #4 of the 11 assets tracked against LCII. Their recent paths diverged sharply: over the last 12 months MDY outperformed by 18.6 percentage points (-0.3% for LCII against +18.3% for MDY). Note the risk asymmetry: LCII 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.
LCII vs MDY: side by side
| LCII (LCI Industries) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | -0.3% | +18.3% |
| 5-year return | -12.8% | +47.5% |
| Volatility (ann.) | 34.4% | 16.5% |
| Beta vs S&P 500 | 0.95 | 0.91 |
| Max drawdown (3Y) | -41.8% | -24.0% |
| Market cap | $2.5B | – |
| P/E (trailing) | 11.9 | – |
| Dividend yield | 4.47% | 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 | LCII | MDY |
|---|---|---|
| 2022 | -38.5% | -13.3% |
| 2023 | +41.1% | +16.1% |
| 2024 | -14.6% | +13.6% |
| 2025 | +22.8% | +7.2% |
| 2026 | -13.1% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LCII and MDY good diversifiers for each other?
Only partially. A correlation of 0.63 means LCII 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 LCII and MDY?
As of 2026-08-27, the correlation of weekly returns between LCII and MDY is 0.63 over 3 years, 0.38 over 1 year and 0.67 over 5 years.
Is MDY a good diversifier for LCII?
Only partially. A correlation of 0.63 means LCII 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 0.63 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: LCII correlations · MDY correlations
