LECO vs MDY: Correlation
Measured on weekly returns over the past three years, Lincoln Electric Holdings, Inc. (LECO) and SPDR S&P MidCap 400 ETF (MDY) carry a correlation of 0.69, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LECO and MDY?
Over the past 3 years, LECO and MDY moved with a correlation of 0.69, which is strong. Little has changed lately, as the 1-year reading of 0.65 lands near the 3-year figure. Over 5 years the correlation is 0.72, and the annualized covariance of weekly returns is 316.5 %².
In LECO's tracked universe of 18 assets, MDY sits right near the top at #1. Neither side won the trailing year by much: +18.4% against +18.3%. Note the risk asymmetry: LECO runs 1.7 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.
LECO vs MDY: side by side
| LECO (Lincoln Electric Holdings, Inc.) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +18.4% | +18.3% |
| 5-year return | +120.5% | +47.5% |
| Volatility (ann.) | 27.9% | 16.5% |
| Beta vs S&P 500 | 1.03 | 0.91 |
| Max drawdown (3Y) | -34.3% | -24.0% |
| Market cap | $15.8B | – |
| P/E (trailing) | 29.0 | – |
| Dividend yield | 1.08% | 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 | LECO | MDY |
|---|---|---|
| 2022 | +5.4% | -13.3% |
| 2023 | +52.6% | +16.1% |
| 2024 | -12.6% | +13.6% |
| 2025 | +29.6% | +7.2% |
| 2026 | +21.7% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that MDY holds LECO at a 0.44% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are LECO and MDY good diversifiers for each other?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LECO and MDY?
The LECO/MDY correlation stands at 0.69 on a 3-year window (1 year: 0.65, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is MDY a good diversifier for LECO?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.69 mean?
On the −1 to +1 scale, 0.69 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.
Use this data
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Related comparisons
Hubs: LECO correlations · MDY correlations
