ALK vs ULCC: Correlation
Measured on weekly returns over the past three years, Alaska Air Group, Inc. (ALK) and Frontier Group Holdings, Inc. (ULCC) carry a correlation of 0.60, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALK and ULCC?
Across a 3-year window, the weekly returns of ALK and ULCC correlate at 0.60, strong. The link has tightened recently: the 1-year correlation (0.73) runs above the 3-year figure (0.60). Stretching to 5 years gives 0.63, with an annualized covariance of 2228.0 %².
Among the 13 assets we track against ALK, ULCC ranks #6 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months ULCC outperformed by 55.2 percentage points (-31.8% for ALK against +23.4% for ULCC). Note the risk asymmetry: ULCC runs 1.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
ALK vs ULCC: side by side
| ALK (Alaska Air Group, Inc.) | ULCC (Frontier Group Holdings, Inc.) | |
|---|---|---|
| 1-year return | -31.8% | +23.4% |
| 5-year return | -25.6% | -61.9% |
| Volatility (ann.) | 45.5% | 81.0% |
| Beta vs S&P 500 | 1.01 | 2.06 |
| Max drawdown (3Y) | -55.4% | -70.4% |
| Market cap | $4.7B | $1.4B |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ALK | ULCC |
|---|---|---|
| 2022 | -17.6% | -24.3% |
| 2023 | -9.0% | -46.8% |
| 2024 | +65.7% | +30.2% |
| 2025 | -22.3% | -33.8% |
| 2026 | -16.1% | +25.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALK and ULCC good diversifiers for each other?
To a limited degree. At 0.60 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 ALK and ULCC?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.73 over the last year and 0.63 over 5 years.
Is ULCC a good diversifier for ALK?
To a limited degree. At 0.60 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 0.60 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/alk-vs-ulcc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/alk-vs-ulcc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ALK correlations · ULCC correlations
