AAL vs ALGT: Correlation
Measured on weekly returns over the past three years, American Airlines Group, Inc. (AAL) and Allegiant Travel Company (ALGT) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AAL and ALGT?
On 3 years of weekly data the AAL/ALGT correlation comes out at 0.63, strong. The past 12 months show a tighter link (0.81) than the 3-year average (0.63). The 5-year figure is 0.63, and annualized covariance runs at 1648.1 %².
Within AAL's tracked universe of 22 assets, ALGT comes in at #5 by 3-year correlation. The last year tells two different stories: ALGT led by 24.0 percentage points, +4.5% for AAL against +28.5% for ALGT.
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.
AAL vs ALGT: side by side
| AAL (American Airlines Group, Inc.) | ALGT (Allegiant Travel Company) | |
|---|---|---|
| 1-year return | +4.5% | +28.5% |
| 5-year return | -29.7% | -55.9% |
| Volatility (ann.) | 45.3% | 58.0% |
| Beta vs S&P 500 | 1.29 | 1.36 |
| Max drawdown (3Y) | -51.4% | -61.2% |
| Market cap | $9.1B | $2.2B |
| P/E (trailing) | – | 71.7 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | AAL | ALGT |
|---|---|---|
| 2022 | -29.2% | -63.6% |
| 2023 | +8.0% | +23.4% |
| 2024 | +26.9% | +16.0% |
| 2025 | -12.0% | -9.4% |
| 2026 | -10.5% | -5.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AAL and ALGT good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AAL and ALGT?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.81 over the last year and 0.63 over 5 years.
Is ALGT a good diversifier for AAL?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.63 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/aal-vs-algt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aal-vs-algt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AAL correlations · ALGT correlations
