LUV vs VXZ: Correlation
How closely do Southwest Airlines (LUV) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) trade together? Their weekly returns over three years give a correlation of -0.38, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LUV and VXZ?
Over the past 3 years, LUV and VXZ moved with a correlation of -0.38, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.41) sits close to the 3-year figure. Over 5 years the correlation is -0.39, and the annualized covariance of weekly returns is -396.2 %².
VXZ is close to the least connected end of LUV's tracked universe, ranking #31 of 32. Their recent paths diverged sharply: over the last 12 months LUV outperformed by 38.1 percentage points (+22.0% for LUV against -16.1% for VXZ). One caveat on sizing: LUV is 1.6 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 VXZ: side by side
| LUV (Southwest Airlines) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +22.0% | -16.1% |
| 5-year return | -12.3% | -53.1% |
| Volatility (ann.) | 40.5% | 25.6% |
| Beta vs S&P 500 | 1.11 | -1.31 |
| Max drawdown (3Y) | -33.5% | -36.4% |
| Market cap | $19.5B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 1.77% | – |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | LUV | VXZ |
|---|---|---|
| 2022 | -21.4% | +0.5% |
| 2023 | -11.8% | -44.0% |
| 2024 | +19.1% | -12.7% |
| 2025 | +25.6% | +5.7% |
| 2026 | -3.0% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LUV and VXZ good diversifiers for each other?
Yes: at -0.38, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between LUV and VXZ?
The LUV/VXZ correlation stands at -0.38 on a 3-year window (1 year: -0.41, 5 years: -0.39), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for LUV?
Yes: at -0.38, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.38 mean?
On the −1 to +1 scale, -0.38 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-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/luv-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LUV correlations · VXZ correlations
