ALGT vs LUV: Correlation
How closely do Allegiant Travel Company (ALGT) and Southwest Airlines (LUV) trade together? Their weekly returns over three years give a correlation of 0.60, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALGT and LUV?
Over the past 3 years, ALGT and LUV moved with a correlation of 0.60, which is strong. The link has tightened recently: the 1-year correlation (0.79) runs above the 3-year figure (0.60). Over 5 years the correlation is 0.62, and the annualized covariance of weekly returns is 1405.0 %².
Within ALGT's tracked universe of 15 assets, LUV comes in at #8 by 3-year correlation. On 12-month performance ALGT holds a 6.5-point edge, +28.5% against +22.0%.
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.
ALGT vs LUV: side by side
| ALGT (Allegiant Travel Company) | LUV (Southwest Airlines) | |
|---|---|---|
| 1-year return | +28.5% | +22.0% |
| 5-year return | -55.9% | -12.3% |
| Volatility (ann.) | 58.0% | 40.5% |
| Beta vs S&P 500 | 1.36 | 1.11 |
| Max drawdown (3Y) | -61.2% | -33.5% |
| Market cap | $2.2B | $19.5B |
| P/E (trailing) | 71.7 | 25.5 |
| Dividend yield | 0.00% | 1.77% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | ALGT | LUV |
|---|---|---|
| 2022 | -63.6% | -21.4% |
| 2023 | +23.4% | -11.8% |
| 2024 | +16.0% | +19.1% |
| 2025 | -9.4% | +25.6% |
| 2026 | -5.8% | -3.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALGT and LUV good diversifiers for each other?
Only partially. A correlation of 0.60 means ALGT and LUV 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 ALGT and LUV?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.79 over the last year and 0.62 over 5 years.
Is LUV a good diversifier for ALGT?
Only partially. A correlation of 0.60 means ALGT and LUV share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.60 mean?
A reading of 0.60 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/algt-vs-luv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/algt-vs-luv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ALGT correlations · LUV correlations
