LUV vs USO: Correlation
Measured on weekly returns over the past three years, Southwest Airlines (LUV) and United States Oil Fund (USO) carry a correlation of -0.31, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LUV and USO?
Over the past 3 years, LUV and USO moved with a correlation of -0.31, which is negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.59 versus -0.31 over 3 years. Over 5 years the correlation is -0.16, and the annualized covariance of weekly returns is -500.2 %².
Out of 32 assets tracked against LUV, USO lands near the bottom at #30. The last year tells two different stories: USO led by 52.1 percentage points, +22.0% for LUV against +74.1% for USO. The relationship is regime-dependent: the rolling one-year correlation swung between -0.59 and 0.27 over the past three years, so this pair behaves very differently depending on the market environment.
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 USO: side by side
| LUV (Southwest Airlines) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +22.0% | +74.1% |
| 5-year return | -12.3% | +168.6% |
| Volatility (ann.) | 40.5% | 39.4% |
| Beta vs S&P 500 | 1.11 | -0.20 |
| Max drawdown (3Y) | -33.5% | -32.5% |
| Market cap | $19.5B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 1.77% | – |
| Sector / category | Industrials | ETF · Commodities |
Year-by-year returns
| Year | LUV | USO |
|---|---|---|
| 2022 | -21.4% | +29.0% |
| 2023 | -11.8% | -4.9% |
| 2024 | +19.1% | +13.4% |
| 2025 | +25.6% | -8.5% |
| 2026 | -3.0% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LUV and USO good diversifiers for each other?
Yes. With a correlation of -0.31, LUV and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between LUV and USO?
Using weekly returns as of 2026-08-27: -0.31 over 3 years, with -0.59 over the last year and -0.16 over 5 years.
Is USO a good diversifier for LUV?
Yes. With a correlation of -0.31, LUV and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
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-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/luv-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LUV correlations · USO correlations
