BOW vs RLI: Correlation
Bowhead Specialty Holdings Inc. (BOW) and RLI Corp. (RLI) show a moderate relationship: their 3-year correlation of weekly returns is 0.51.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BOW and RLI?
On 3 years of weekly data the BOW/RLI correlation comes out at 0.51, moderate. The link has loosened recently: the 1-year correlation (0.39) runs below the 3-year figure (0.51). The 5-year figure is n/a, and annualized covariance runs at 411.7 %².
By 3-year correlation, RLI places #5 of the 16 assets tracked against BOW. The trailing year gives BOW the advantage: +7.0% versus +1.9%, a 5.1-point spread. Risk is not evenly split, since BOW 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.
BOW vs RLI: side by side
| BOW (Bowhead Specialty Holdings Inc.) | RLI (RLI Corp.) | |
|---|---|---|
| 1-year return | +7.0% | +1.9% |
| 5-year return | n/a | +46.7% |
| Volatility (ann.) | 34.6% | 22.2% |
| Beta vs S&P 500 | 0.37 | 0.18 |
| Max drawdown (3Y) | -49.1% | -43.5% |
| Market cap | $1.1B | $5.9B |
| P/E (trailing) | 18.2 | 13.5 |
| Dividend yield | 0.00% | 1.02% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BOW | RLI |
|---|---|---|
| 2022 | – | +24.8% |
| 2023 | – | +3.8% |
| 2024 | – | +27.6% |
| 2025 | -19.7% | -19.1% |
| 2026 | +17.7% | +5.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BOW and RLI good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BOW and RLI?
The BOW/RLI correlation stands at 0.51 on a 3-year window (1 year: 0.39, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is RLI a good diversifier for BOW?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.51 mean?
On the −1 to +1 scale, 0.51 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bow-vs-rli.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/bow-vs-rli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BOW correlations · RLI correlations
