ESNT vs SPY: Correlation
Measured on weekly returns over the past three years, Essent Group Ltd. (ESNT) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.38, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESNT and SPY?
Over the past 3 years, ESNT and SPY moved with a correlation of 0.38, which is moderate. The past 12 months show a weaker link (0.16) than the 3-year average (0.38). Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 118.3 %².
Among the 13 assets we track against ESNT, SPY sits near the bottom by co-movement, at rank #9. On 12-month performance SPY holds a 10.4-point edge, +10.2% against +20.6%.
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 SPY: side by side
| ESNT (Essent Group Ltd.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +10.2% | +20.6% |
| 5-year return | +62.5% | +82.4% |
| Volatility (ann.) | 21.4% | 14.5% |
| Beta vs S&P 500 | 0.57 | 1.00 |
| Max drawdown (3Y) | -18.4% | -18.8% |
| Market cap | $6.2B | – |
| P/E (trailing) | 9.7 | – |
| Dividend yield | 1.90% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | ESNT | SPY |
|---|---|---|
| 2022 | -12.8% | -18.2% |
| 2023 | +38.6% | +26.2% |
| 2024 | +5.2% | +24.9% |
| 2025 | +20.7% | +17.7% |
| 2026 | +7.9% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESNT and SPY good diversifiers for each other?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ESNT and SPY?
As of 2026-08-27, the correlation of weekly returns between ESNT and SPY is 0.38 over 3 years, 0.16 over 1 year and 0.53 over 5 years.
Is SPY a good diversifier for ESNT?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.38 mean?
On the −1 to +1 scale, 0.38 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.
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Related comparisons
Hubs: ESNT correlations · SPY correlations
