ESNT vs RDN: Correlation
Measured on weekly returns over the past three years, Essent Group Ltd. (ESNT) and Radian Group Inc. (RDN) carry a correlation of 0.82, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESNT and RDN?
On 3 years of weekly data the ESNT/RDN correlation comes out at 0.82, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.76 over 1 year against 0.82 over 3. The 5-year figure is 0.81, and annualized covariance runs at 412.4 %².
Within ESNT's tracked universe of 13 assets, RDN comes in at #4 by 3-year correlation. Their 12-month results are close: +10.2% for ESNT against +7.6% for RDN.
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 RDN: side by side
| ESNT (Essent Group Ltd.) | RDN (Radian Group Inc.) | |
|---|---|---|
| 1-year return | +10.2% | +7.6% |
| 5-year return | +62.5% | +82.4% |
| Volatility (ann.) | 21.4% | 23.5% |
| Beta vs S&P 500 | 0.57 | 0.64 |
| Max drawdown (3Y) | -18.4% | -16.5% |
| Market cap | $6.2B | $4.8B |
| P/E (trailing) | 9.7 | 9.1 |
| Dividend yield | 1.90% | 2.77% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ESNT | RDN |
|---|---|---|
| 2022 | -12.8% | -6.3% |
| 2023 | +38.6% | +55.3% |
| 2024 | +5.2% | +14.5% |
| 2025 | +20.7% | +16.9% |
| 2026 | +7.9% | +3.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESNT and RDN good diversifiers for each other?
No: a correlation of 0.82 means ESNT and RDN tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between ESNT and RDN?
Using weekly returns as of 2026-08-27: 0.82 over 3 years, with 0.76 over the last year and 0.81 over 5 years.
Is RDN a good diversifier for ESNT?
No: a correlation of 0.82 means ESNT and RDN tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.82 mean?
A reading of 0.82 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/esnt-vs-rdn.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/esnt-vs-rdn/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ESNT correlations · RDN correlations
