AAL vs ALK: Correlation
American Airlines Group, Inc. (AAL) and Alaska Air Group, Inc. (ALK) show a strong relationship: their 3-year correlation of weekly returns is 0.65.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AAL and ALK?
Over the past 3 years, AAL and ALK moved with a correlation of 0.65, which is strong. The link has tightened recently: the 1-year correlation (0.76) runs above the 3-year figure (0.65). Over 5 years the correlation is 0.71, and the annualized covariance of weekly returns is 1341.4 %².
Within AAL's tracked universe of 22 assets, ALK comes in at #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with AAL ahead by 36.3 points (+4.5% versus -31.8%).
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 ALK: side by side
| AAL (American Airlines Group, Inc.) | ALK (Alaska Air Group, Inc.) | |
|---|---|---|
| 1-year return | +4.5% | -31.8% |
| 5-year return | -29.7% | -25.6% |
| Volatility (ann.) | 45.3% | 45.5% |
| Beta vs S&P 500 | 1.29 | 1.01 |
| Max drawdown (3Y) | -51.4% | -55.4% |
| Market cap | $9.1B | $4.7B |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | AAL | ALK |
|---|---|---|
| 2022 | -29.2% | -17.6% |
| 2023 | +8.0% | -9.0% |
| 2024 | +26.9% | +65.7% |
| 2025 | -12.0% | -22.3% |
| 2026 | -10.5% | -16.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AAL and ALK good diversifiers for each other?
Only partially. A correlation of 0.65 means AAL and ALK 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 AAL and ALK?
As of 2026-08-27, the correlation of weekly returns between AAL and ALK is 0.65 over 3 years, 0.76 over 1 year and 0.71 over 5 years.
Is ALK a good diversifier for AAL?
Only partially. A correlation of 0.65 means AAL and ALK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.65 mean?
A reading of 0.65 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
$ curl https://www.pairbook.io/api/v1/pairs/aal-vs-alk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/aal-vs-alk/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AAL correlations · ALK correlations
