Southwest Airlines Correlations

SWN Stock

EUR 28.55 0.15 0.52%

The current 90-days correlation between Southwest Airlines and ASM Pacific Technology is 0.46 (i.e., Very weak diversification). The correlation of Southwest Airlines is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Southwest Airlines Correlation With Market

Good diversification

The correlation between Southwest Airlines Co and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Airlines Co and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Southwest Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Southwest Airlines when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Southwest Airlines - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Southwest Airlines Co to buy it.

Moving together with Southwest Stock

0.8	OYC	Delta Air Lines Earnings Call This Week	Pair Corr
0.72	AD2	Air China Limited	Pair Corr
0.74	AD2B	AIR CHINA LTD	Pair Corr
0.76	RY4D	RYANAIR HLDGS ADR	Pair Corr
0.75	ZNHH	China Southern Airlines	Pair Corr
0.68	RY4C	Ryanair Holdings plc	Pair Corr
0.71	RY4C	Ryanair Holdings plc	Pair Corr
0.68	KGHA	KGHM Polska Miedz	Pair Corr
0.64	IBU	IBU tec advanced	Pair Corr
0.62	A9U	Astral Foods Limited	Pair Corr
0.73	3T4	Teradata Corp	Pair Corr
0.63	1ZO	ZhongAn Online P	Pair Corr
0.79	RAG	Radian Group	Pair Corr
0.73	TLK	Toll Brothers	Pair Corr
0.73	DBPE	Xtrackers LevDAX	Pair Corr
0.72	E908	Lyxor 1	Pair Corr

Moving against Southwest Stock

0.74

DBPD

Xtrackers ShortDAX

Pair Corr

Related Correlations Analysis

	1MA	XFB	AY7A	WB2	KDIC	6C2	NWC	AFW
1MA		0.93	0.56	0.87	0.66	0.82	0.67	0.71	1MA
XFB	0.93		0.43	0.75	0.61	0.68	0.65	0.72	XFB
AY7A	0.56	0.43		0.73	0.66	0.71	0.62	0.61	AY7A
WB2	0.87	0.75	0.73		0.54	0.84	0.8	0.77	WB2
KDIC	0.66	0.61	0.66	0.54		0.56	0.47	0.53	KDIC
6C2	0.82	0.68	0.71	0.84	0.56		0.59	0.51	6C2
NWC	0.67	0.65	0.62	0.8	0.47	0.59		0.73	NWC
AFW	0.71	0.72	0.61	0.77	0.53	0.51	0.73		AFW
	1MA	XFB	AY7A	WB2	KDIC	6C2	NWC	AFW

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Risk-Adjusted Indicators

There is a big difference between Southwest Stock performing well and Southwest Airlines Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Southwest Airlines' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
1MA	1.91	0.34	0.09	0.76	2.59	(2.43)	5.95	(2.86)	14.70
XFB	2.35	0.84	0.33	2.18	1.76	(2.88)	5.60	(3.86)	17.95
AY7A	2.05	(0.03)	(0.02)	0.02	3.11	(2.96)	5.08	(3.20)	17.20
WB2	1.55	0.08	0.01	0.30	2.24	(1.54)	3.61	(3.41)	10.84
KDIC	2.87	0.12	0.02	0.28	3.53	(3.69)	7.38	(3.97)	17.96
6C2	3.64	0.08	0.00	0.38	4.81	(4.26)	8.28	(11.16)	31.35
NWC	2.21	0.10	0.03	0.22	2.48	(2.78)	5.66	(4.20)	13.70
AFW	2.02	0.23	0.05	(2.56)	2.41	(2.18)	4.57	(3.15)	17.52

Be your own money manager

Our tools can tell you how much better you can do entering a position in Southwest Airlines without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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