AAL vs LUV: Correlation
Measured on weekly returns over the past three years, American Airlines Group, Inc. (AAL) and Southwest Airlines (LUV) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AAL and LUV?
Over the past 3 years, AAL and LUV moved with a correlation of 0.58, which is moderate. Little has changed lately, as the 1-year reading of 0.64 lands near the 3-year figure. Over 5 years the correlation is 0.64, and the annualized covariance of weekly returns is 1057.3 %².
Among the 22 assets we track against AAL, LUV ranks #6 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months LUV outperformed by 17.5 percentage points (+4.5% for AAL against +22.0% for LUV).
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 LUV: side by side
| AAL (American Airlines Group, Inc.) | LUV (Southwest Airlines) | |
|---|---|---|
| 1-year return | +4.5% | +22.0% |
| 5-year return | -29.7% | -12.3% |
| Volatility (ann.) | 45.3% | 40.5% |
| Beta vs S&P 500 | 1.29 | 1.11 |
| Max drawdown (3Y) | -51.4% | -33.5% |
| Market cap | $9.1B | $19.5B |
| P/E (trailing) | – | 25.5 |
| Dividend yield | 0.00% | 1.77% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | AAL | LUV |
|---|---|---|
| 2022 | -29.2% | -21.4% |
| 2023 | +8.0% | -11.8% |
| 2024 | +26.9% | +19.1% |
| 2025 | -12.0% | +25.6% |
| 2026 | -10.5% | -3.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AAL and LUV good diversifiers for each other?
To a limited degree. At 0.58 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between AAL and LUV?
The AAL/LUV correlation stands at 0.58 on a 3-year window (1 year: 0.64, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is LUV a good diversifier for AAL?
To a limited degree. At 0.58 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.58 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-luv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aal-vs-luv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AAL correlations · LUV correlations
