LITE vs MDY: Correlation
Measured on weekly returns over the past three years, Lumentum (LITE) and SPDR S&P MidCap 400 ETF (MDY) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LITE and MDY?
Across a 3-year window, the weekly returns of LITE and MDY correlate at 0.58, moderate. The link has loosened recently: the 1-year correlation (0.42) runs below the 3-year figure (0.58). Stretching to 5 years gives 0.52, with an annualized covariance of 623.8 %².
Among the 34 assets we track against LITE, MDY ranks #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months LITE outperformed by 641.5 percentage points (+659.8% for LITE against +18.3% for MDY). On a rolling one-year basis the correlation drifted between 0.32 and 0.79, a moderate band. One caveat on sizing: LITE is 4.0 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.
LITE vs MDY: side by side
| LITE (Lumentum) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +659.8% | +18.3% |
| 5-year return | +998.1% | +47.5% |
| Volatility (ann.) | 65.5% | 16.5% |
| Beta vs S&P 500 | 2.36 | 0.91 |
| Max drawdown (3Y) | -50.6% | -24.0% |
| Market cap | $85.8B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 1.02% |
| Expense ratio | – | 0.23% |
| Assets under management | – | $26.5B |
| Sector / category | Information Technology | 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 | LITE | MDY |
|---|---|---|
| 2022 | -50.7% | -13.3% |
| 2023 | +0.5% | +16.1% |
| 2024 | +60.1% | +13.6% |
| 2025 | +339.1% | +7.2% |
| 2026 | +159.4% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LITE and MDY good diversifiers for each other?
To a limited degree. At 0.58 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 LITE and MDY?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.42 over the last year and 0.52 over 5 years.
Is MDY a good diversifier for LITE?
To a limited degree. At 0.58 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 0.58 mean?
On the −1 to +1 scale, 0.58 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
$ curl https://www.pairbook.io/api/v1/pairs/lite-vs-mdy.json
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Related comparisons
Hubs: LITE correlations · MDY correlations
