CPA vs ULCC: Correlation
How closely do Copa Holdings, S.A. (CPA) and Frontier Group Holdings, Inc. (ULCC) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CPA and ULCC?
Across a 3-year window, the weekly returns of CPA and ULCC correlate at 0.55, moderate. The link has tightened recently: the 1-year correlation (0.68) runs above the 3-year figure (0.55). Stretching to 5 years gives 0.49, with an annualized covariance of 1317.1 %².
Among the 12 assets we track against CPA, ULCC ranks #5 by 3-year correlation. On 12-month performance ULCC holds a 5.6-point edge, +17.8% against +23.4%. Risk is not evenly split, since ULCC carries 2.8 times the volatility of the other side.
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.
CPA vs ULCC: side by side
| CPA (Copa Holdings, S.A.) | ULCC (Frontier Group Holdings, Inc.) | |
|---|---|---|
| 1-year return | +17.8% | +23.4% |
| 5-year return | +112.6% | -61.9% |
| Volatility (ann.) | 29.3% | 81.0% |
| Beta vs S&P 500 | 0.83 | 2.06 |
| Max drawdown (3Y) | -29.2% | -70.4% |
| Market cap | $5.4B | $1.4B |
| P/E (trailing) | 8.7 | – |
| Dividend yield | 5.01% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CPA | ULCC |
|---|---|---|
| 2022 | +0.6% | -24.3% |
| 2023 | +32.4% | -46.8% |
| 2024 | -11.5% | +30.2% |
| 2025 | +45.6% | -33.8% |
| 2026 | +11.5% | +25.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CPA and ULCC good diversifiers for each other?
To a limited degree. At 0.55 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 CPA and ULCC?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.68 over the last year and 0.49 over 5 years.
Is ULCC a good diversifier for CPA?
To a limited degree. At 0.55 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 0.55 mean?
A reading of 0.55 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/cpa-vs-ulcc.json
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[](https://www.pairbook.io/pair/cpa-vs-ulcc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CPA correlations · ULCC correlations
