RDN vs SPY: Correlation
Radian Group Inc. (RDN) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RDN and SPY?
On 3 years of weekly data the RDN/SPY correlation comes out at 0.40, moderate. The past 12 months show a weaker link (0.10) than the 3-year average (0.40). The 5-year figure is 0.43, and annualized covariance runs at 134.1 %².
SPY is close to the least connected end of RDN's tracked universe, ranking #8 of 12. The trailing year gives SPY the advantage: +7.6% versus +20.6%, a 13.0-point spread. Risk is not evenly split, since RDN carries 1.6 times the volatility of the other side.
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.
RDN vs SPY: side by side
| RDN (Radian Group Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +7.6% | +20.6% |
| 5-year return | +82.4% | +82.4% |
| Volatility (ann.) | 23.5% | 14.5% |
| Beta vs S&P 500 | 0.64 | 1.00 |
| Max drawdown (3Y) | -16.5% | -18.8% |
| Market cap | $4.8B | – |
| P/E (trailing) | 9.1 | – |
| Dividend yield | 2.77% | 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 | RDN | SPY |
|---|---|---|
| 2022 | -6.3% | -18.2% |
| 2023 | +55.3% | +26.2% |
| 2024 | +14.5% | +24.9% |
| 2025 | +16.9% | +17.7% |
| 2026 | +3.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RDN and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between RDN and SPY?
As of 2026-08-27, the correlation of weekly returns between RDN and SPY is 0.40 over 3 years, 0.10 over 1 year and 0.43 over 5 years.
Is SPY a good diversifier for RDN?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 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: RDN correlations · SPY correlations
