LGND vs MDY: Correlation
Ligand Pharmaceuticals Incorporated (LGND) and SPDR S&P MidCap 400 ETF (MDY) show a moderate relationship: their 3-year correlation of weekly returns is 0.48.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LGND and MDY?
Across a 3-year window, the weekly returns of LGND and MDY correlate at 0.48, moderate. The link has loosened recently: the 1-year correlation (0.32) runs below the 3-year figure (0.48). Stretching to 5 years gives 0.51, with an annualized covariance of 278.9 %².
Within LGND's tracked universe of 11 assets, MDY comes in at #4 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months LGND outperformed by 60.5 percentage points (+78.8% for LGND against +18.3% for MDY). Note the risk asymmetry: LGND 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.
LGND vs MDY: side by side
| LGND (Ligand Pharmaceuticals Incorporated) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +78.8% | +18.3% |
| 5-year return | +276.5% | +47.5% |
| Volatility (ann.) | 35.4% | 16.5% |
| Beta vs S&P 500 | 1.02 | 0.91 |
| Max drawdown (3Y) | -25.6% | -24.0% |
| Market cap | $5.7B | – |
| P/E (trailing) | 29.7 | – |
| Dividend yield | 0.00% | 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 | LGND | MDY |
|---|---|---|
| 2022 | -30.7% | -13.3% |
| 2023 | +6.9% | +16.1% |
| 2024 | +50.0% | +13.6% |
| 2025 | +76.5% | +7.2% |
| 2026 | +50.5% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LGND and MDY good diversifiers for each other?
Reasonably. At 0.48, LGND and MDY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between LGND and MDY?
As of 2026-08-27, the correlation of weekly returns between LGND and MDY is 0.48 over 3 years, 0.32 over 1 year and 0.51 over 5 years.
Is MDY a good diversifier for LGND?
Reasonably. At 0.48, LGND and MDY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.48 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: LGND correlations · MDY correlations
