Correlation Between 882508BQ6 and Bowhead Specialty

Can any of the company-specific risk be diversified away by investing in both 882508BQ6 and Bowhead Specialty 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 882508BQ6 and Bowhead Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TXN 41 16 AUG 52 and Bowhead Specialty Holdings, you can compare the effects of market volatilities on 882508BQ6 and Bowhead Specialty 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 882508BQ6 with a short position of Bowhead Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of 882508BQ6 and Bowhead Specialty.

Diversification Opportunities for 882508BQ6 and Bowhead Specialty

-0.28

Correlation Coefficient

882508BQ6  Bowhead Specialty

Very good diversification

The 3 months correlation between 882508BQ6 and Bowhead is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding TXN 41 16 AUG 52 and Bowhead Specialty Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowhead Specialty and 882508BQ6 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 TXN 41 16 AUG 52 are associated (or correlated) with Bowhead Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowhead Specialty has no effect on the direction of 882508BQ6 i.e., 882508BQ6 and Bowhead Specialty go up and down completely randomly.

Pair Corralation between 882508BQ6 and Bowhead Specialty

Assuming the 90 days trading horizon TXN 41 16 AUG 52 is expected to generate 1.5 times more return on investment than Bowhead Specialty. However, 882508BQ6 is 1.5 times more volatile than Bowhead Specialty Holdings. It trades about 0.07 of its potential returns per unit of risk. Bowhead Specialty Holdings is currently generating about -0.21 per unit of risk. If you would invest  7,629  in TXN 41 16 AUG 52 on May 8, 2025 and sell it today you would earn a total of  401.00  from holding TXN 41 16 AUG 52 or generate 5.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	57.38%
Values	Daily Returns

TXN 41 16 AUG 52  vs.  Bowhead Specialty Holdings

TXN 41 16

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in TXN 41 16 AUG 52 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, 882508BQ6 may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Bowhead Specialty

Risk-Adjusted Performance

Weakest

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.

Pair Trading with 882508BQ6 and Bowhead Specialty

The main advantage of trading using opposite 882508BQ6 and Bowhead Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 882508BQ6 position performs unexpectedly, Bowhead Specialty 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 Bowhead Specialty will offset losses from the drop in Bowhead Specialty's long position.

The idea behind TXN 41 16 AUG 52 and Bowhead Specialty Holdings 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 Global Correlations module to find global opportunities by holding instruments from different markets.