MTG vs RDN: Correlation
How closely do MGIC Investment Corporation (MTG) and Radian Group Inc. (RDN) trade together? Their weekly returns over three years give a correlation of 0.85, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTG and RDN?
On 3 years of weekly data the MTG/RDN correlation comes out at 0.85, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.70) runs below the 3-year figure (0.85). The 5-year figure is 0.84, and annualized covariance runs at 431.7 %².
Few assets follow MTG as closely as RDN, which ranks #3 of 16 tracked partners. The trailing year gives MTG the advantage: +13.5% versus +7.6%, a 5.9-point spread.
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.
MTG vs RDN: side by side
| MTG (MGIC Investment Corporation) | RDN (Radian Group Inc.) | |
|---|---|---|
| 1-year return | +13.5% | +7.6% |
| 5-year return | +129.5% | +82.4% |
| Volatility (ann.) | 21.6% | 23.5% |
| Beta vs S&P 500 | 0.57 | 0.64 |
| Max drawdown (3Y) | -15.8% | -16.5% |
| Market cap | $6.4B | $4.8B |
| P/E (trailing) | 9.8 | 9.1 |
| Dividend yield | 1.92% | 2.77% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MTG | RDN |
|---|---|---|
| 2022 | -7.5% | -6.3% |
| 2023 | +52.4% | +55.3% |
| 2024 | +25.7% | +14.5% |
| 2025 | +25.9% | +16.9% |
| 2026 | +8.2% | +3.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTG and RDN good diversifiers for each other?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between MTG and RDN?
The MTG/RDN correlation stands at 0.85 on a 3-year window (1 year: 0.70, 5 years: 0.84), computed from weekly returns as of 2026-08-27.
Is RDN a good diversifier for MTG?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.85 mean?
A reading of 0.85 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/mtg-vs-rdn.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mtg-vs-rdn/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MTG correlations · RDN correlations
