Southwest Airlines Backtesting

LUV -- USA Stock  

Fiscal Quarter End: December 31, 2019  

With this equity back-testing module your can estimate the performance of a buy and hold strategy of Southwest Airlines Company and determine expected loss or profit from investing in Southwest Airlines over given investment horizon. Please see also Southwest Airlines Hype Analysis, Southwest Airlines Correlation, Southwest Airlines Valuation, Southwest Airlines Volatility as well as analyze Southwest Airlines Alpha and Beta and Southwest Airlines Performance.
Horizon     30 Days    Login   to change

Southwest Airlines 'What if' Analysis

September 7, 2019
No Change 0.00  0.0 
In 3 months and 1 day
December 6, 2019
If you would invest  0.00  in Southwest Airlines on September 7, 2019 and sell it all today you would earn a total of 0.00 from holding Southwest Airlines Company or generate 0.0% return on investment in Southwest Airlines over 90 days. Southwest Airlines is related to or competes with Hawaiian Holdings, American Airlines, Alaska Air, Avianca Holdings, China Eastern, Copa Holdings, and Delta Air. Southwest Airlines Co. operates a passenger airline that provides scheduled air transportation services in the United St...

Southwest Airlines Upside/Downside Indicators

Downside Deviation0.9437
Information Ratio0.0236
Maximum Drawdown7.32
Value At Risk(1.60)
Potential Upside1.59

Southwest Airlines Market Premium Indicators

Risk Adjusted Performance0.0596
Jensen Alpha0.0338
Total Risk Alpha(0.030935)
Sortino Ratio0.0286
Treynor Ratio0.1037

Southwest Airlines Backtested Returns

We consider Southwest Airlines very steady. Southwest Airlines owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0677 which indicates the firm had 0.0677% of return per unit of risk over the last 3 months. Our philosophy towards measuring volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Southwest Airlines Company which you can use to evaluate future volatility of the company. Please validate Southwest Airlines Semi Deviation of 0.8246, Risk Adjusted Performance of 0.0596 and Coefficient Of Variation of 1111.64 to confirm if risk estimate we provide are consistent with the epected return of 0.0768%. Southwest Airlines has performance score of 4 on a scale of 0 to 100. The entity has beta of 0.897 which indicates Southwest Airlines returns are very sensitive to returns on the market. as market goes up or down, Southwest Airlines is expected to follow. Although it is extremely important to respect Southwest Airlines current price movements, it is better to be realistic regarding the information on equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By inspecting Southwest Airlines technical indicators you can presently evaluate if the expected return of 0.0768% will be sustainable into the future. Southwest Airlines right now has a risk of 1.135%. Please validate Southwest Airlines Total Risk Alpha, Downside Variance as well as the relationship between Downside Variance and Daily Balance Of Power to decide if Southwest Airlines will be following its existing price patterns.
Advice Volatility Trend Exposure Correlations
15 days auto-correlation 0.16 
correlation synergy

Very weak predictability

Southwest Airlines Company has very weak predictability. Overlapping area represents the amount of predictability between Southwest Airlines time series from September 7, 2019 to October 22, 2019 and October 22, 2019 to December 6, 2019. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Southwest Airlines price movement. The serial correlation of 0.16 indicates that over 16.0% of current Southwest Airlines price fluctuation can be explain by its past prices.
Correlation Coefficient0.16
Spearman Rank Test-0.07
Residual Average0.0
Price Variance1.52

Southwest Airlines lagged returns against current returns

 Current and Lagged Values 

Southwest Airlines regressed lagged prices vs. current prices

 Current vs Lagged Prices 

Southwest Airlines Lagged Returns

 Regressed Prices 

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Please see also Southwest Airlines Hype Analysis, Southwest Airlines Correlation, Southwest Airlines Valuation, Southwest Airlines Volatility as well as analyze Southwest Airlines Alpha and Beta and Southwest Airlines Performance. Please also try Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.