NMIH vs RDN: Correlation
Measured on weekly returns over the past three years, NMI Holdings Inc (NMIH) and Radian Group Inc. (RDN) carry a correlation of 0.78, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NMIH and RDN?
On 3 years of weekly data the NMIH/RDN correlation comes out at 0.78, strong. Recent behaviour matches the longer record: 0.73 over 1 year against 0.78 over 3. The 5-year figure is 0.78, and annualized covariance runs at 439.9 %².
By 3-year correlation, RDN places #4 of the 14 assets tracked against NMIH. The trailing year gives NMIH the advantage: +12.9% versus +7.6%, a 5.3-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.
NMIH vs RDN: side by side
| NMIH (NMI Holdings Inc) | RDN (Radian Group Inc.) | |
|---|---|---|
| 1-year return | +12.9% | +7.6% |
| 5-year return | +99.5% | +82.4% |
| Volatility (ann.) | 24.1% | 23.5% |
| Beta vs S&P 500 | 0.55 | 0.64 |
| Max drawdown (3Y) | -21.4% | -16.5% |
| Market cap | $3.4B | $4.8B |
| P/E (trailing) | 8.9 | 9.1 |
| Dividend yield | 0.00% | 2.77% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NMIH | RDN |
|---|---|---|
| 2022 | -4.3% | -6.3% |
| 2023 | +42.0% | +55.3% |
| 2024 | +23.9% | +14.5% |
| 2025 | +11.0% | +16.9% |
| 2026 | +9.8% | +3.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NMIH and RDN good diversifiers for each other?
Only partially. A correlation of 0.78 means NMIH and RDN 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 NMIH and RDN?
The NMIH/RDN correlation stands at 0.78 on a 3-year window (1 year: 0.73, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is RDN a good diversifier for NMIH?
Only partially. A correlation of 0.78 means NMIH and RDN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.78 mean?
A reading of 0.78 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/nmih-vs-rdn.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nmih-vs-rdn/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NMIH correlations · RDN correlations
