MDY vs TEX: Correlation
How closely do SPDR S&P MidCap 400 ETF (MDY) and Terex Corporation (TEX) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and TEX?
Over the past 3 years, MDY and TEX moved with a correlation of 0.72, which is strong. The link has loosened recently: the 1-year correlation (0.61) runs below the 3-year figure (0.72). Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 483.3 %².
Among the 359 assets we track against MDY, TEX ranks #51 by 3-year correlation. The trailing year gives TEX the advantage: +18.3% versus +24.2%, a 5.9-point spread. Risk is not evenly split, since TEX carries 2.5 times the volatility of the other side.
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 TEX: side by side
| MDY (SPDR S&P MidCap 400 ETF) | TEX (Terex Corporation) | |
|---|---|---|
| 1-year return | +18.3% | +24.2% |
| 5-year return | +47.5% | +31.7% |
| Volatility (ann.) | 16.5% | 41.0% |
| Beta vs S&P 500 | 0.91 | 1.38 |
| Max drawdown (3Y) | -24.0% | -51.3% |
| Market cap | – | $7.4B |
| P/E (trailing) | – | 31.2 |
| Dividend yield | 1.02% | 1.04% |
| Expense ratio | 0.23% | – |
| Assets under management | $26.5B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
MDY is a Mid-Cap Blend fund from State Street Investment Management: $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield.
Year-by-year returns
| Year | MDY | TEX |
|---|---|---|
| 2022 | -13.3% | -1.4% |
| 2023 | +16.1% | +36.1% |
| 2024 | +13.6% | -18.6% |
| 2025 | +7.2% | +17.3% |
| 2026 | +16.4% | +21.9% |
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 TEX at a 0.2% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are MDY and TEX good diversifiers for each other?
Only partially. A correlation of 0.72 means MDY and TEX share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between MDY and TEX?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.61 over the last year and 0.75 over 5 years.
Is TEX a good diversifier for MDY?
Only partially. A correlation of 0.72 means MDY and TEX share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
On the −1 to +1 scale, 0.72 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/mdy-vs-tex.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mdy-vs-tex/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MDY correlations · TEX correlations
