SKWD vs THG: Correlation
How closely do Skyward Specialty Insurance Group, Inc. (SKWD) and Hanover Insurance Group Inc (THG) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SKWD and THG?
Over the past 3 years, SKWD and THG moved with a correlation of 0.54, which is moderate. Little has changed lately, as the 1-year reading of 0.51 lands near the 3-year figure. Over 5 years the correlation is n/a, and the annualized covariance of weekly returns is 414.8 %².
Among the 11 assets we track against SKWD, THG ranks #5 by 3-year correlation. Over the last 12 months THG came out ahead by 14.6 percentage points (+18.5% against +33.1%). Note the risk asymmetry: SKWD runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
SKWD vs THG: side by side
| SKWD (Skyward Specialty Insurance Group, Inc.) | THG (Hanover Insurance Group Inc) | |
|---|---|---|
| 1-year return | +18.5% | +33.1% |
| 5-year return | n/a | +81.9% |
| Volatility (ann.) | 34.9% | 21.9% |
| Beta vs S&P 500 | 0.31 | 0.24 |
| Max drawdown (3Y) | -36.5% | -14.0% |
| Market cap | $2.3B | $7.9B |
| P/E (trailing) | 13.4 | 10.9 |
| Dividend yield | 0.00% | 1.64% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | SKWD | THG |
|---|---|---|
| 2022 | – | +5.4% |
| 2023 | – | -7.6% |
| 2024 | +49.2% | +30.6% |
| 2025 | +1.1% | +20.7% |
| 2026 | +12.8% | +25.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SKWD and THG good diversifiers for each other?
Only partially. A correlation of 0.54 means SKWD and THG 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 SKWD and THG?
The SKWD/THG correlation stands at 0.54 on a 3-year window (1 year: 0.51, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is THG a good diversifier for SKWD?
Only partially. A correlation of 0.54 means SKWD and THG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.54 mean?
A reading of 0.54 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: SKWD correlations · THG correlations
