IEX vs LUV: Correlation
How closely do IDEX Corporation (IEX) and Southwest Airlines (LUV) trade together? Their weekly returns over three years give a correlation of 0.47, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEX and LUV?
Across a 3-year window, the weekly returns of IEX and LUV correlate at 0.47, moderate. Recent behaviour matches the longer record: 0.47 over 1 year against 0.47 over 3. Stretching to 5 years gives 0.42, with an annualized covariance of 446.4 %².
Within IEX's tracked universe of 40 assets, LUV comes in at #29 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IEX outperformed by 21.0 percentage points (+43.0% for IEX against +22.0% for LUV). Across three years, the rolling one-year figure varied moderately, from 0.19 to 0.65. One caveat on sizing: LUV is 1.7 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.
IEX vs LUV: side by side
| IEX (IDEX Corporation) | LUV (Southwest Airlines) | |
|---|---|---|
| 1-year return | +43.0% | +22.0% |
| 5-year return | +10.5% | -12.3% |
| Volatility (ann.) | 23.3% | 40.5% |
| Beta vs S&P 500 | 0.89 | 1.11 |
| Max drawdown (3Y) | -34.6% | -33.5% |
| Market cap | $17.2B | $19.5B |
| P/E (trailing) | 33.8 | 25.5 |
| Dividend yield | 1.23% | 1.77% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | IEX | LUV |
|---|---|---|
| 2022 | -2.2% | -21.4% |
| 2023 | -3.8% | -11.8% |
| 2024 | -2.4% | +19.1% |
| 2025 | -13.7% | +25.6% |
| 2026 | +32.9% | -3.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEX and LUV good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IEX and LUV?
The IEX/LUV correlation stands at 0.47 on a 3-year window (1 year: 0.47, 5 years: 0.42), computed from weekly returns as of 2026-08-27.
Is LUV a good diversifier for IEX?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.47 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/iex-vs-luv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iex-vs-luv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IEX correlations · LUV correlations
