LUV vs UAL: Correlation
Measured on weekly returns over the past three years, Southwest Airlines (LUV) and United Airlines Holdings (UAL) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LUV and UAL?
On 3 years of weekly data the LUV/UAL correlation comes out at 0.57, moderate. The past 12 months show a tighter link (0.72) than the 3-year average (0.57). The 5-year figure is 0.64, and annualized covariance runs at 1066.4 %².
Within LUV's tracked universe of 32 assets, UAL comes in at #6 by 3-year correlation. On 12-month performance LUV holds a 14.2-point edge, +22.0% against +7.8%. On a rolling one-year basis the correlation drifted between 0.28 and 0.73, a moderate band.
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 UAL: side by side
| LUV (Southwest Airlines) | UAL (United Airlines Holdings) | |
|---|---|---|
| 1-year return | +22.0% | +7.8% |
| 5-year return | -12.3% | +144.8% |
| Volatility (ann.) | 40.5% | 46.6% |
| Beta vs S&P 500 | 1.11 | 1.33 |
| Max drawdown (3Y) | -33.5% | -49.2% |
| Market cap | $19.5B | $36.5B |
| P/E (trailing) | 25.5 | 10.8 |
| Dividend yield | 1.77% | 0.00% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | LUV | UAL |
|---|---|---|
| 2022 | -21.4% | -13.9% |
| 2023 | -11.8% | +9.4% |
| 2024 | +19.1% | +135.3% |
| 2025 | +25.6% | +15.2% |
| 2026 | -3.0% | +0.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LUV and UAL good diversifiers for each other?
To a limited degree. At 0.57 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 LUV and UAL?
Using weekly returns as of 2026-08-27: 0.57 over 3 years, with 0.72 over the last year and 0.64 over 5 years.
Is UAL a good diversifier for LUV?
To a limited degree. At 0.57 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 0.57 mean?
On the −1 to +1 scale, 0.57 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/luv-vs-ual.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/luv-vs-ual/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LUV correlations · UAL correlations
