LUV vs VXX: Correlation
Southwest Airlines (LUV) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) show a negative relationship: their 3-year correlation of weekly returns is -0.41.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LUV and VXX?
On 3 years of weekly data the LUV/VXX correlation comes out at -0.41, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.38) sits close to the 3-year figure. The 5-year figure is -0.38, and annualized covariance runs at -1014.5 %².
Among the 32 assets we track against LUV, VXX sits near the bottom by co-movement, at rank #32. Correlation aside, the last 12 months split them widely, with LUV ahead by 71.7 points (+22.0% versus -49.7%). Risk is not evenly split, since VXX carries 1.5 times the volatility of the other side.
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 VXX: side by side
| LUV (Southwest Airlines) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +22.0% | -49.7% |
| 5-year return | -12.3% | -95.6% |
| Volatility (ann.) | 40.5% | 60.9% |
| Beta vs S&P 500 | 1.11 | -3.31 |
| Max drawdown (3Y) | -33.5% | -83.3% |
| Market cap | $19.5B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 1.77% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | LUV | VXX |
|---|---|---|
| 2022 | -21.4% | -23.8% |
| 2023 | -11.8% | -72.5% |
| 2024 | +19.1% | -26.2% |
| 2025 | +25.6% | -42.2% |
| 2026 | -3.0% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LUV and VXX good diversifiers for each other?
Yes. With a correlation of -0.41, LUV and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between LUV and VXX?
As of 2026-08-27, the correlation of weekly returns between LUV and VXX is -0.41 over 3 years, -0.38 over 1 year and -0.38 over 5 years.
Is VXX a good diversifier for LUV?
Yes. With a correlation of -0.41, LUV and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.41 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/luv-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/luv-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: LUV correlations · VXX correlations
