LOCO vs MDY: Correlation
Measured on weekly returns over the past three years, El Pollo Loco Holdings, Inc. (LOCO) and SPDR S&P MidCap 400 ETF (MDY) carry a correlation of 0.46, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LOCO and MDY?
On 3 years of weekly data the LOCO/MDY correlation comes out at 0.46, moderate. The past 12 months show a weaker link (0.18) than the 3-year average (0.46). The 5-year figure is 0.43, and annualized covariance runs at 255.6 %².
In LOCO's tracked universe of 12 assets, MDY sits right near the top at #3. Their recent paths diverged sharply: over the last 12 months LOCO outperformed by 24.0 percentage points (+42.3% for LOCO against +18.3% for MDY). Note the risk asymmetry: LOCO 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.
LOCO vs MDY: side by side
| LOCO (El Pollo Loco Holdings, Inc.) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +42.3% | +18.3% |
| 5-year return | -3.0% | +47.5% |
| Volatility (ann.) | 33.9% | 16.5% |
| Beta vs S&P 500 | 0.82 | 0.91 |
| Max drawdown (3Y) | -35.9% | -24.0% |
| Market cap | $0.5B | – |
| P/E (trailing) | 13.3 | – |
| 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 | LOCO | MDY |
|---|---|---|
| 2022 | -19.0% | -13.3% |
| 2023 | -11.4% | +16.1% |
| 2024 | +30.8% | +13.6% |
| 2025 | -9.4% | +7.2% |
| 2026 | +45.3% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LOCO and MDY good diversifiers for each other?
A fair diversifier. At 0.46, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between LOCO and MDY?
As of 2026-08-27, the correlation of weekly returns between LOCO and MDY is 0.46 over 3 years, 0.18 over 1 year and 0.43 over 5 years.
Is MDY a good diversifier for LOCO?
A fair diversifier. At 0.46, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.46 mean?
On the −1 to +1 scale, 0.46 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.
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Related comparisons
Hubs: LOCO correlations · MDY correlations
