Essent Correlations

ESNT Stock

USD 57.71 0.22 0.38%

The current 90-days correlation between Essent Group and Radian Group is 0.89 (i.e., Very poor diversification). The correlation of Essent is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Essent Correlation With Market

Modest diversification

The correlation between Essent Group and DJI is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Essent Group and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Essent Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Moving together with Essent Stock

0.76	ACT	Enact Holdings	Pair Corr
0.7	MTG	MGIC Investment Corp	Pair Corr
0.63	RDN	Radian Group	Pair Corr
0.69	JRVR	James River Group	Pair Corr
0.78	NMIH	NMI Holdings Normal Trading	Pair Corr
0.73	CB	Chubb	Pair Corr
0.73	EG	Everest Group	Pair Corr

Moving against Essent Stock

0.62	MBI	MBIA Inc Downward Rally	Pair Corr
0.5	AXS	AXIS Capital Holdings	Pair Corr
0.5	ICCH	ICC Holdings	Pair Corr
0.4	EIG	Employers Holdings	Pair Corr
0.36	ITIC	Investors Title	Pair Corr
0.35	AGO	Assured Guaranty	Pair Corr
0.77	V	Visa Class A Earnings Call This Week	Pair Corr
0.69	DIST	Distoken Acquisition	Pair Corr
0.59	C	Citigroup Aggressive Push	Pair Corr
0.53	CM	Canadian Imperial Bank Sell-off Trend	Pair Corr
0.48	BY	Byline Bancorp Earnings Call This Week	Pair Corr
0.41	BN	Brookfield Corp	Pair Corr
0.41	BX	Blackstone Group Earnings Call This Week	Pair Corr
0.38	AX	Axos Financial	Pair Corr
0.35	TIPT	Tiptree	Pair Corr
0.35	L	Loews Corp	Pair Corr
0.74	LC	LendingClub Corp	Pair Corr
0.59	LX	Lexinfintech Holdings Buyout Trend	Pair Corr
0.58	QD	Qudian Inc	Pair Corr
0.56	GS	Goldman Sachs Group Fiscal Year End 21st of January 2025	Pair Corr

Related Correlations Analysis

	RDN	NMIH	MBI	JRVR	MTG	EIG	ICCH	AMSF	ITIC
RDN		0.9	-0.16	0.25	0.97	0.36	-0.56	0.53	0.41	RDN
NMIH	0.9		-0.36	0.45	0.94	0.1	-0.6	0.24	0.17	NMIH
MBI	-0.16	-0.36		-0.92	-0.16	0.61	0.46	0.21	0.68	MBI
JRVR	0.25	0.45	-0.92		0.28	-0.56	-0.48	-0.2	-0.65	JRVR
MTG	0.97	0.94	-0.16	0.28		0.29	-0.55	0.44	0.36	MTG
EIG	0.36	0.1	0.61	-0.56	0.29		0.0	0.74	0.91	EIG
ICCH	-0.56	-0.6	0.46	-0.48	-0.55	0.0		-0.29	0.0	ICCH
AMSF	0.53	0.24	0.21	-0.2	0.44	0.74	-0.29		0.69	AMSF
ITIC	0.41	0.17	0.68	-0.65	0.36	0.91	0.0	0.69		ITIC
	RDN	NMIH	MBI	JRVR	MTG	EIG	ICCH	AMSF	ITIC

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

MTG	+ 0.97	RDN
MTG	+ 0.94	NMIH
ITIC	+ 0.91	EIG
NMIH	+ 0.9	RDN
AMSF	+ 0.74	EIG
ITIC	+ 0.69	AMSF

High negative correlations

JRVR	- 0.92	MBI
ITIC	- 0.65	JRVR
ICCH	- 0.6	NMIH
EIG	- 0.56	JRVR
ICCH	- 0.56	RDN
ICCH	- 0.55	MTG

Risk-Adjusted Indicators

There is a big difference between Essent Stock performing well and Essent Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Essent's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
RDN	1.35	(0.04)	0.00	(0.08)	0.00	0.00	2.28	(3.05)	11.00
NMIH	1.26	(0.12)	0.00	(0.22)	0.00	0.00	2.37	(3.63)	9.75
MBI	3.12	1.00	0.25	(8.47)	3.07	(3.43)	7.12	(5.36)	32.82
JRVR	2.29	(0.37)	0.00	(1.15)	0.00	0.00	3.47	(4.22)	31.98
MTG	1.12	(0.07)	0.00	(0.12)	0.00	0.00	2.12	(3.13)	7.79
EIG	1.04	0.08	0.06	0.12	1.22	(1.12)	1.70	(2.11)	12.08
ICCH	0.40	0.01	0.02	(0.95)	0.59	(0.48)	1.17	(0.82)	4.57
AMSF	1.19	0.10	0.07	0.27	1.35	(1.56)	2.44	(2.15)	16.47
ITIC	1.54	0.09	0.04	0.15	2.15	(1.60)	3.89	(2.54)	15.02

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