MDY vs NOVT: Correlation
How closely do SPDR S&P MidCap 400 ETF (MDY) and Novanta Inc. (NOVT) trade together? Their weekly returns over three years give a correlation of 0.69, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and NOVT?
Across a 3-year window, the weekly returns of MDY and NOVT correlate at 0.69, strong. The past 12 months show a weaker link (0.56) than the 3-year average (0.69). Stretching to 5 years gives 0.68, with an annualized covariance of 480.4 %².
Among the 359 assets we track against MDY, NOVT ranks #69 by 3-year correlation. Their 12-month results are close: +18.3% for MDY against +23.0% for NOVT. One caveat on sizing: NOVT is 2.6 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.
MDY vs NOVT: side by side
| MDY (SPDR S&P MidCap 400 ETF) | NOVT (Novanta Inc.) | |
|---|---|---|
| 1-year return | +18.3% | +23.0% |
| 5-year return | +47.5% | -4.1% |
| Volatility (ann.) | 16.5% | 42.1% |
| Beta vs S&P 500 | 0.91 | 1.79 |
| Max drawdown (3Y) | -24.0% | -46.7% |
| Market cap | – | $5.5B |
| P/E (trailing) | – | 91.6 |
| Dividend yield | 1.02% | 0.00% |
| Expense ratio | 0.23% | – |
| Assets under management | $26.5B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
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 | MDY | NOVT |
|---|---|---|
| 2022 | -13.3% | -22.9% |
| 2023 | +16.1% | +23.9% |
| 2024 | +13.6% | -9.3% |
| 2025 | +7.2% | -22.1% |
| 2026 | +16.4% | +21.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.14% of MDY is NOVT itself, so the fund partly moves with the stock by construction.
Are MDY and NOVT 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 MDY and NOVT?
The MDY/NOVT correlation stands at 0.69 on a 3-year window (1 year: 0.56, 5 years: 0.68), computed from weekly returns as of 2026-08-27.
Is NOVT a good diversifier for MDY?
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?
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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-novt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mdy-vs-novt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MDY correlations · NOVT correlations
