BOW vs THG: Correlation
How closely do Bowhead Specialty Holdings Inc. (BOW) and Hanover Insurance Group Inc (THG) trade together? Their weekly returns over three years give a correlation of 0.52, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BOW and THG?
Across a 3-year window, the weekly returns of BOW and THG correlate at 0.52, moderate. The relationship has been stable: the 1-year correlation (0.47) sits close to the 3-year figure. Stretching to 5 years gives n/a, with an annualized covariance of 402.5 %².
Among the 16 assets we track against BOW, THG ranks #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with THG ahead by 26.1 points (+7.0% versus +33.1%). One caveat on sizing: BOW is 1.6 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.
BOW vs THG: side by side
| BOW (Bowhead Specialty Holdings Inc.) | THG (Hanover Insurance Group Inc) | |
|---|---|---|
| 1-year return | +7.0% | +33.1% |
| 5-year return | n/a | +81.9% |
| Volatility (ann.) | 34.6% | 21.9% |
| Beta vs S&P 500 | 0.37 | 0.24 |
| Max drawdown (3Y) | -49.1% | -14.0% |
| Market cap | $1.1B | $7.9B |
| P/E (trailing) | 18.2 | 10.9 |
| Dividend yield | 0.00% | 1.64% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BOW | THG |
|---|---|---|
| 2022 | – | +5.4% |
| 2023 | – | -7.6% |
| 2024 | – | +30.6% |
| 2025 | -19.7% | +20.7% |
| 2026 | +17.7% | +25.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BOW and THG good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BOW and THG?
As of 2026-08-27, the correlation of weekly returns between BOW and THG is 0.52 over 3 years, 0.47 over 1 year and n/a over 5 years.
Is THG a good diversifier for BOW?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.52 mean?
On the −1 to +1 scale, 0.52 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: BOW correlations · THG correlations
