MDY vs TXT: Correlation
How closely do SPDR S&P MidCap 400 ETF (MDY) and Textron (TXT) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and TXT?
On 3 years of weekly data the MDY/TXT correlation comes out at 0.67, strong. The relationship has been stable: the 1-year correlation (0.61) sits close to the 3-year figure. The 5-year figure is 0.72, and annualized covariance runs at 282.0 %².
Within MDY's tracked universe of 359 assets, TXT comes in at #97 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months MDY outperformed by 17.6 percentage points (+18.3% for MDY against +0.7% for TXT). On a rolling one-year basis the correlation drifted between 0.43 and 0.85, a moderate band. Note the risk asymmetry: TXT runs 1.5 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.
MDY vs TXT: side by side
| MDY (SPDR S&P MidCap 400 ETF) | TXT (Textron) | |
|---|---|---|
| 1-year return | +18.3% | +0.7% |
| 5-year return | +47.5% | +15.1% |
| Volatility (ann.) | 16.5% | 25.4% |
| Beta vs S&P 500 | 0.91 | 0.89 |
| Max drawdown (3Y) | -24.0% | -37.3% |
| Market cap | – | $14.2B |
| P/E (trailing) | – | 15.7 |
| Dividend yield | 1.02% | 0.10% |
| Expense ratio | 0.23% | – |
| Assets under management | $26.5B | – |
| Sector / category | ETF · US Small & Mid Cap | Industrials |
On the fund side, MDY sits in the Mid-Cap Blend category at State Street Investment Management, with $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield.
Year-by-year returns
| Year | MDY | TXT |
|---|---|---|
| 2022 | -13.3% | -8.2% |
| 2023 | +16.1% | +13.7% |
| 2024 | +13.6% | -4.8% |
| 2025 | +7.2% | +14.1% |
| 2026 | +16.4% | -5.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and TXT good diversifiers for each other?
Only partially. A correlation of 0.67 means MDY and TXT 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 TXT?
As of 2026-08-27, the correlation of weekly returns between MDY and TXT is 0.67 over 3 years, 0.61 over 1 year and 0.72 over 5 years.
Is TXT a good diversifier for MDY?
Only partially. A correlation of 0.67 means MDY and TXT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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-txt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mdy-vs-txt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MDY correlations · TXT correlations
