DAL vs ULCC: Correlation
Delta Air Lines (DAL) and Frontier Group Holdings, Inc. (ULCC) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DAL and ULCC?
On 3 years of weekly data the DAL/ULCC correlation comes out at 0.60, strong. The link has tightened recently: the 1-year correlation (0.79) runs above the 3-year figure (0.60). The 5-year figure is 0.60, and annualized covariance runs at 1816.2 %².
Among the 33 assets we track against DAL, ULCC ranks #8 by 3-year correlation. Over the last 12 months DAL came out ahead by 10.5 percentage points (+33.9% against +23.4%). One caveat on sizing: ULCC is 2.2 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
DAL vs ULCC: side by side
| DAL (Delta Air Lines) | ULCC (Frontier Group Holdings, Inc.) | |
|---|---|---|
| 1-year return | +33.9% | +23.4% |
| 5-year return | +110.6% | -61.9% |
| Volatility (ann.) | 37.1% | 81.0% |
| Beta vs S&P 500 | 1.17 | 2.06 |
| Max drawdown (3Y) | -47.9% | -70.4% |
| Market cap | – | $1.4B |
| P/E (trailing) | 13.8 | – |
| Dividend yield | 0.94% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | DAL | ULCC |
|---|---|---|
| 2022 | -15.9% | -24.3% |
| 2023 | +23.0% | -46.8% |
| 2024 | +52.0% | +30.2% |
| 2025 | +16.1% | -33.8% |
| 2026 | +17.8% | +25.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DAL and ULCC good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DAL and ULCC?
The DAL/ULCC correlation stands at 0.60 on a 3-year window (1 year: 0.79, 5 years: 0.60), computed from weekly returns as of 2026-08-27.
Is ULCC a good diversifier for DAL?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
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/dal-vs-ulcc.json
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Related comparisons
Hubs: DAL correlations · ULCC correlations
