NMIH vs SPY: Correlation
How closely do NMI Holdings Inc (NMIH) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.33, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NMIH and SPY?
Across a 3-year window, the weekly returns of NMIH and SPY correlate at 0.33, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.11 versus 0.33 over 3 years. Stretching to 5 years gives 0.39, with an annualized covariance of 114.8 %².
Among the 14 assets we track against NMIH, SPY ranks #8 by 3-year correlation. Over the last 12 months SPY came out ahead by 7.7 percentage points (+12.9% against +20.6%). One caveat on sizing: NMIH is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 SPY: side by side
| NMIH (NMI Holdings Inc) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +12.9% | +20.6% |
| 5-year return | +99.5% | +82.4% |
| Volatility (ann.) | 24.1% | 14.5% |
| Beta vs S&P 500 | 0.55 | 1.00 |
| Max drawdown (3Y) | -21.4% | -18.8% |
| Market cap | $3.4B | – |
| P/E (trailing) | 8.9 | – |
| Dividend yield | 0.00% | 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 | NMIH | SPY |
|---|---|---|
| 2022 | -4.3% | -18.2% |
| 2023 | +42.0% | +26.2% |
| 2024 | +23.9% | +24.9% |
| 2025 | +11.0% | +17.7% |
| 2026 | +9.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NMIH and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.33 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between NMIH and SPY?
Using weekly returns as of 2026-08-27: 0.33 over 3 years, with 0.11 over the last year and 0.39 over 5 years.
Is SPY a good diversifier for NMIH?
Yes, to a useful degree: a correlation of 0.33 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.33 mean?
A reading of 0.33 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: NMIH correlations · SPY correlations
