Correlation Between Bowhead Specialty and Anterix

Can any of the company-specific risk be diversified away by investing in both Bowhead Specialty and Anterix at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bowhead Specialty and Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bowhead Specialty Holdings and Anterix, you can compare the effects of market volatilities on Bowhead Specialty and Anterix and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bowhead Specialty with a short position of Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bowhead Specialty and Anterix.

Diversification Opportunities for Bowhead Specialty and Anterix

0.9

Correlation Coefficient

Bowhead Specialty  Anterix

Almost no diversification

The 3 months correlation between Bowhead and Anterix is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bowhead Specialty Holdings and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and Bowhead Specialty is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bowhead Specialty Holdings are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Bowhead Specialty i.e., Bowhead Specialty and Anterix go up and down completely randomly.

Pair Corralation between Bowhead Specialty and Anterix

Considering the 90-day investment horizon Bowhead Specialty Holdings is expected to generate 0.88 times more return on investment than Anterix. However, Bowhead Specialty Holdings is 1.14 times less risky than Anterix. It trades about -0.22 of its potential returns per unit of risk. Anterix is currently generating about -0.22 per unit of risk. If you would invest  4,098  in Bowhead Specialty Holdings on May 6, 2025 and sell it today you would lose (906.00) from holding Bowhead Specialty Holdings or give up 22.11% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Bowhead Specialty Holdings  vs.  Anterix

Bowhead Specialty

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bowhead Specialty Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Anterix

Risk-Adjusted Performance

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Bowhead Specialty and Anterix

The main advantage of trading using opposite Bowhead Specialty and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bowhead Specialty position performs unexpectedly, Anterix can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Anterix will offset losses from the drop in Anterix's long position.

The idea behind Bowhead Specialty Holdings and Anterix pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.