Southwest Airlines Variance
| LUV Stock | | | USD 39.45 1.70 4.50% |
Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean. Below is Southwest Airlines's current Variance with peer comparisons and related risk metrics.
Current Variance Value
A Variance of 14.66 for Southwest Airlines signals elevated price variability. This places Southwest Airlines toward the higher end of the volatility range for Passenger Airlines.
Variance | = | SUM(RET DEV)2N |
| = | 14.66 | |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Variance Peers Comparison
The peer group averages 8.52 for Variance, with Southwest Airlines at 14.66 falling above that level. Readings span 3.06 (ZTO Express) to 15.14 (Joby Aviation). Southwest Airlines has exhibited greater price dispersion than the peer average over the measured period.
Variance Relative To Other Indicators
The chart below plots Variance against Maximum Drawdown for Southwest Airlines and its peers. Each point represents one equity — position along the horizontal axis shows Variance while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
Southwest Airlines produces
1.78 in Maximum Drawdown for each unit of Variance, with respective readings of
26.05 and
14.66 . This indicates Maximum Drawdown moderately exceeds Variance for Southwest Airlines.
Methodology, Assumptions & Data Sources
Southwest Airlines has a current Variance reading of 14.66. The Variance for Southwest Airlines is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. Southwest Airlines operates in the industrials sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. The output reflects the selected calculation window — changing the horizon will produce different readings. This stock metric is provided for analytical reference.
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