ESNT vs MTG: Correlation
Measured on weekly returns over the past three years, Essent Group Ltd. (ESNT) and MGIC Investment Corporation (MTG) carry a correlation of 0.89, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESNT and MTG?
Over the past 3 years, ESNT and MTG moved with a correlation of 0.89, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.87 over 1 year against 0.89 over 3. Over 5 years the correlation is 0.89, and the annualized covariance of weekly returns is 409.8 %².
Few assets follow ESNT as closely as MTG, which ranks #1 of 13 tracked partners. Twelve-month performance is nearly a tie, at +10.2% for ESNT and +13.5% for MTG.
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.
ESNT vs MTG: side by side
| ESNT (Essent Group Ltd.) | MTG (MGIC Investment Corporation) | |
|---|---|---|
| 1-year return | +10.2% | +13.5% |
| 5-year return | +62.5% | +129.5% |
| Volatility (ann.) | 21.4% | 21.6% |
| Beta vs S&P 500 | 0.57 | 0.57 |
| Max drawdown (3Y) | -18.4% | -15.8% |
| Market cap | $6.2B | $6.4B |
| P/E (trailing) | 9.7 | 9.8 |
| Dividend yield | 1.90% | 1.92% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ESNT | MTG |
|---|---|---|
| 2022 | -12.8% | -7.5% |
| 2023 | +38.6% | +52.4% |
| 2024 | +5.2% | +25.7% |
| 2025 | +20.7% | +25.9% |
| 2026 | +7.9% | +8.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESNT and MTG good diversifiers for each other?
No. With a correlation of 0.89, ESNT and MTG move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ESNT and MTG?
Using weekly returns as of 2026-08-27: 0.89 over 3 years, with 0.87 over the last year and 0.89 over 5 years.
Is MTG a good diversifier for ESNT?
No. With a correlation of 0.89, ESNT and MTG move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.89 mean?
On the −1 to +1 scale, 0.89 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/esnt-vs-mtg.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/esnt-vs-mtg/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ESNT correlations · MTG correlations
