LUV vs QQQ: Correlation
Measured on weekly returns over the past three years, Southwest Airlines (LUV) and Invesco QQQ Trust (QQQ) carry a correlation of 0.31, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LUV and QQQ?
Across a 3-year window, the weekly returns of LUV and QQQ correlate at 0.31, moderate. Little has changed lately, as the 1-year reading of 0.26 lands near the 3-year figure. Stretching to 5 years gives 0.33, with an annualized covariance of 244.3 %².
By 3-year correlation, QQQ places #22 of the 32 assets tracked against LUV. Their 12-month results are close: +22.0% for LUV against +26.3% for QQQ. This link changes with the market regime, having swung between -0.09 and 0.49 on a rolling one-year basis. One caveat on sizing: LUV is 2.1 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.
LUV vs QQQ: side by side
| LUV (Southwest Airlines) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +22.0% | +26.3% |
| 5-year return | -12.3% | +95.4% |
| Volatility (ann.) | 40.5% | 19.6% |
| Beta vs S&P 500 | 1.11 | 1.28 |
| Max drawdown (3Y) | -33.5% | -22.8% |
| Market cap | $19.5B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 1.77% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Industrials | ETF · US Growth & Tech |
QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | LUV | QQQ |
|---|---|---|
| 2022 | -21.4% | -32.6% |
| 2023 | -11.8% | +54.9% |
| 2024 | +19.1% | +25.6% |
| 2025 | +25.6% | +20.8% |
| 2026 | -3.0% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LUV and QQQ good diversifiers for each other?
A fair diversifier. At 0.31, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between LUV and QQQ?
Using weekly returns as of 2026-08-27: 0.31 over 3 years, with 0.26 over the last year and 0.33 over 5 years.
Is QQQ a good diversifier for LUV?
A fair diversifier. At 0.31, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.31 mean?
A reading of 0.31 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/luv-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/luv-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LUV correlations · QQQ correlations
