UAL vs ULCC: Correlation
United Airlines Holdings (UAL) and Frontier Group Holdings, Inc. (ULCC) show a moderate relationship: their 3-year correlation of weekly returns is 0.58.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are UAL and ULCC?
On 3 years of weekly data the UAL/ULCC correlation comes out at 0.58, moderate. Lately the two have moved closer together, with the 1-year correlation at 0.73 versus 0.58 over 3 years. The 5-year figure is 0.59, and annualized covariance runs at 2199.2 %².
Within UAL's tracked universe of 33 assets, ULCC comes in at #8 by 3-year correlation. The last year tells two different stories: ULCC led by 15.6 percentage points, +7.8% for UAL against +23.4% for ULCC. Note the risk asymmetry: ULCC runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
UAL vs ULCC: side by side
| UAL (United Airlines Holdings) | ULCC (Frontier Group Holdings, Inc.) | |
|---|---|---|
| 1-year return | +7.8% | +23.4% |
| 5-year return | +144.8% | -61.9% |
| Volatility (ann.) | 46.6% | 81.0% |
| Beta vs S&P 500 | 1.33 | 2.06 |
| Max drawdown (3Y) | -49.2% | -70.4% |
| Market cap | $36.5B | $1.4B |
| P/E (trailing) | 10.8 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | UAL | ULCC |
|---|---|---|
| 2022 | -13.9% | -24.3% |
| 2023 | +9.4% | -46.8% |
| 2024 | +135.3% | +30.2% |
| 2025 | +15.2% | -33.8% |
| 2026 | +0.5% | +25.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are UAL and ULCC good diversifiers for each other?
To a limited degree. At 0.58 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 UAL and ULCC?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.73 over the last year and 0.59 over 5 years.
Is ULCC a good diversifier for UAL?
To a limited degree. At 0.58 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 0.58 mean?
A reading of 0.58 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/ual-vs-ulcc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ual-vs-ulcc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: UAL correlations · ULCC correlations
