Southwest Airlines Correlations

0L8F Stock

32.52 0.36 1.12%

The current 90-days correlation between Southwest Airlines and Ameriprise Financial is -0.11 (i.e., Good 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. If the correlation is 0, the equities are not correlated; they are entirely random.

Southwest Airlines Correlation With Market

Good diversification

The correlation between Southwest Airlines Co and DJI is -0.15 (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 against Southwest Stock

0.79	SMSN	Samsung Electronics	Pair Corr
0.79	RIGD	Reliance Industries	Pair Corr
0.78	SMSD	Samsung Electronics	Pair Corr
0.77	HYUD	Hyundai Motor	Pair Corr

Related Correlations Analysis

	0HF6	0JW2	PTEC	0A1U	ATT	PRTC	0RMV	0RCR
0HF6		0.98	0.45	0.2	0.95	0.78	0.87	0.0	0HF6
0JW2	0.98		0.38	0.21	0.93	0.79	0.87	0.0	0JW2
PTEC	0.45	0.38		0.04	0.51	0.0	0.39	0.0	PTEC
0A1U	0.2	0.21	0.04		0.18	0.17	0.28	0.0	0A1U
ATT	0.95	0.93	0.51	0.18		0.74	0.88	0.0	ATT
PRTC	0.78	0.79	0.0	0.17	0.74		0.74	0.0	PRTC
0RMV	0.87	0.87	0.39	0.28	0.88	0.74		0.0	0RMV
0RCR	0.0	0.0	0.0	0.0	0.0	0.0	0.0		0RCR
	0HF6	0JW2	PTEC	0A1U	ATT	PRTC	0RMV	0RCR

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

0JW2	+ 0.98	0HF6
ATT	+ 0.95	0HF6
ATT	+ 0.93	0JW2
0RMV	+ 0.88	ATT
0RMV	+ 0.87	0HF6
0RMV	+ 0.87	0JW2

High negative correlations

0RCR	- 0.0	0RMV
0RCR	- 0.0	PRTC
0RCR	- 0.0	ATT
0RCR	- 0.0	0A1U
0RCR	- 0.0	PTEC
PRTC	- 0.0	PTEC

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
0HF6	1.09	0.23	0.25	0.29	0.69	(1.32)	2.37	(1.45)	11.16
0JW2	1.32	0.20	0.24	0.25	0.85	(1.67)	3.43	(1.62)	11.37
PTEC	1.10	0.19	0.04	(2.44)	1.15	(1.28)	1.63	(1.69)	20.32
0A1U	0.13	0.05	0.00	1.71	0.00	0.00	0.00	0.00	0.00
ATT	1.20	0.16	0.05	0.55	1.43	(1.26)	2.57	(2.72)	7.37
PRTC	1.57	0.00	(0.04)	0.13	1.91	(1.73)	3.02	(3.63)	11.86
0RMV	1.63	0.25	0.09	0.46	1.80	(1.62)	3.37	(3.06)	11.02
0RCR	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

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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Southwest Airlines Corporate Management

Elected by the shareholders, the Southwest Airlines' board of directors comprises two types of representatives: Southwest Airlines inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Southwest. The board's role is to monitor Southwest Airlines' management team and ensure that shareholders' interests are well served. Southwest Airlines' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Southwest Airlines' outside directors are responsible for providing unbiased perspectives on the board's policies.

Dave Harvey	VP Officer	Profile
Whitney Eichinger	Senior Officer	Profile
Julia Landrum	Vice Relations	Profile
Linda Rutherford	Chief Officer	Profile

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