GSHD vs TWFG: Correlation
Measured on weekly returns over the past three years, Goosehead Insurance, Inc. (GSHD) and TWFG, Inc. (TWFG) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GSHD and TWFG?
Across a 3-year window, the weekly returns of GSHD and TWFG correlate at 0.56, moderate. The link has tightened recently: the 1-year correlation (0.72) runs above the 3-year figure (0.56). Stretching to 5 years gives n/a, with an annualized covariance of 1469.0 %².
Few assets follow GSHD as closely as TWFG, which ranks #1 of 15 tracked partners. Correlation aside, the last 12 months split them widely, with TWFG ahead by 23.1 points (-18.5% versus +4.6%).
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.
GSHD vs TWFG: side by side
| GSHD (Goosehead Insurance, Inc.) | TWFG (TWFG, Inc.) | |
|---|---|---|
| 1-year return | -18.5% | +4.6% |
| 5-year return | -47.2% | n/a |
| Volatility (ann.) | 55.1% | 43.1% |
| Beta vs S&P 500 | 0.42 | 0.36 |
| Max drawdown (3Y) | -72.2% | -52.7% |
| Market cap | $2.5B | $0.4B |
| P/E (trailing) | 51.4 | 52.2 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | GSHD | TWFG |
|---|---|---|
| 2022 | -73.6% | – |
| 2023 | +120.7% | – |
| 2024 | +41.5% | – |
| 2025 | -27.4% | -6.6% |
| 2026 | -4.3% | +1.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GSHD and TWFG good diversifiers for each other?
Only partially. A correlation of 0.56 means GSHD and TWFG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between GSHD and TWFG?
The GSHD/TWFG correlation stands at 0.56 on a 3-year window (1 year: 0.72, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is TWFG a good diversifier for GSHD?
Only partially. A correlation of 0.56 means GSHD and TWFG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.56 mean?
A reading of 0.56 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Related comparisons
Hubs: GSHD correlations · TWFG correlations
