BABA vs. LUV
BABA (Alibaba Group Holding Limited) and LUV (Southwest Airlines Co.) are both stocks. BABA operates in Internet Retail (Consumer Cyclical), while LUV operates in Airlines (Industrials). Over the past 10 years, BABA returned 5.06%/yr vs 0.82%/yr for LUV. At a 0.24 correlation, their price movements are largely independent.
Performance
BABA vs. LUV - Performance Comparison
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Returns By Period
In the year-to-date period, BABA achieves a -17.41% return, which is significantly lower than LUV's 0.94% return. Over the past 10 years, BABA has outperformed LUV with an annualized return of 5.06%, while LUV has yielded a comparatively lower 0.82% annualized return.
BABA
- 1D
- -3.88%
- 1M
- -14.41%
- YTD
- -17.41%
- 6M
- -23.53%
- 1Y
- 2.62%
- 3Y*
- 13.71%
- 5Y*
- -10.26%
- 10Y*
- 5.06%
LUV
- 1D
- 0.56%
- 1M
- 0.10%
- YTD
- 0.94%
- 6M
- 10.70%
- 1Y
- 30.56%
- 3Y*
- 13.45%
- 5Y*
- -5.20%
- 10Y*
- 0.82%
BABA vs. LUV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BABA Alibaba Group Holding Limited | -17.41% | 75.80% | 11.77% | -10.83% | -25.84% | -48.96% | 9.73% | 54.74% | -20.51% | 96.37% |
LUV Southwest Airlines Co. | 0.94% | 25.62% | 19.11% | -11.82% | -21.41% | -8.09% | -13.32% | 17.72% | -28.21% | 32.40% |
Correlation
The correlation between BABA and LUV is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.23 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.23 |
Correlation (All Time) Calculated using the full available price history since Sep 22, 2014 | 0.25 |
Fundamentals
BABA:
$292.34B
LUV:
$20.89B
BABA:
$33.90
LUV:
$1.56
BABA:
3.57
LUV:
26.58
BABA:
0.36
LUV:
0.75
BABA:
0.28
LUV:
3.04
BABA:
$811.51B
LUV:
$28.88B
BABA:
$332.88B
LUV:
$6.36B
BABA:
$112.44B
LUV:
$2.74B
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Return for Risk
BABA vs. LUV — Risk / Return Rank
BABA
LUV
BABA vs. LUV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Alibaba Group Holding Limited (BABA) and Southwest Airlines Co. (LUV). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| BABA | LUV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.63 | ||
| Sortino ratioReturn per unit of downside risk | -0.86 | ||
| Omega ratioGain probability vs. loss probability | 1.05 | 1.16 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 0.07 | 0.92 | -0.85 |
| Martin ratioReturn relative to average drawdown | 0.14 | 1.85 | -1.71 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BABA | LUV | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.06 | 0.69 | -0.63 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.20 | -0.14 | -0.06 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.12 | 0.02 | +0.10 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.06 | 0.34 | -0.27 |
Drawdowns
BABA vs. LUV - Drawdown Comparison
The maximum BABA drawdown since its inception was -80.09%, roughly equal to the maximum LUV drawdown of -78.25%. Use the drawdown chart below to compare losses from any high point for BABA and LUV.
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Drawdown Indicators
| BABA | LUV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -80.09% | -78.25% | -1.84% |
Max Drawdown (1Y)Largest decline over 1 year | -36.77% | -33.49% | -3.28% |
Max Drawdown (3Y)Largest decline over 3 years | -36.77% | -42.93% | +6.16% |
Max Drawdown (5Y)Largest decline over 5 years | -72.48% | -61.44% | -11.04% |
Max Drawdown (10Y)Largest decline over 10 years | -80.09% | -64.76% | -15.33% |
Current DrawdownCurrent decline from peak | -59.81% | -30.42% | -29.39% |
Average DrawdownAverage peak-to-trough decline | -37.53% | -29.13% | -8.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 18.88% | 16.58% | +2.30% |
Volatility
BABA vs. LUV - Volatility Comparison
Alibaba Group Holding Limited (BABA) has a higher volatility of 13.26% compared to Southwest Airlines Co. (LUV) at 10.62%. This indicates that BABA's price experiences larger fluctuations and is considered to be riskier than LUV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BABA | LUV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 13.26% | 10.62% | +2.64% |
Volatility (6M)Calculated over the trailing 6-month period | 29.11% | 34.42% | -5.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.70% | 44.33% | -0.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 51.37% | 38.18% | +13.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 43.38% | 37.63% | +5.75% |
Dividends
BABA vs. LUV - Dividend Comparison
BABA's dividend yield for the trailing twelve months is around 1.65%, less than LUV's 1.73% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BABA Alibaba Group Holding Limited | 1.65% | 1.36% | 1.96% | 1.29% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
LUV Southwest Airlines Co. | 1.73% | 1.74% | 2.14% | 3.12% | 0.00% | 0.00% | 0.39% | 1.30% | 1.30% | 0.73% | 0.75% | 0.66% |
Financials
BABA vs. LUV - Financials Comparison
This section allows you to compare key financial metrics between Alibaba Group Holding Limited and Southwest Airlines Co.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
BABA vs. LUV - Profitability Comparison
BABA - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported a gross profit of 11.75B and revenue of 35.15B. Therefore, the gross margin over that period was 33.4%.
LUV - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Southwest Airlines Co. reported a gross profit of 2.34B and revenue of 7.25B. Therefore, the gross margin over that period was 32.2%.
BABA - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported an operating income of -135.47M and revenue of 35.15B, resulting in an operating margin of -0.4%.
LUV - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Southwest Airlines Co. reported an operating income of 330.00M and revenue of 7.25B, resulting in an operating margin of 4.6%.
BABA - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported a net income of 3.69B and revenue of 35.15B, resulting in a net margin of 10.5%.
LUV - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Southwest Airlines Co. reported a net income of 227.00M and revenue of 7.25B, resulting in a net margin of 3.1%.
Frequently Asked Questions
BABA and LUV have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BABA has higher volatility (13.26%) compared to LUV (10.62%). In terms of maximum drawdown, BABA dropped -80.09% vs LUV's -78.25%.
LUV currently has the higher Sharpe Ratio (0.69 vs 0.06), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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