ARI vs NLY: Correlation
Measured on weekly returns over the past three years, Apollo Commercial Real Estate Finance, Inc (ARI) and Annaly Capital Management Inc. (NLY) carry a correlation of 0.65, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARI and NLY?
On 3 years of weekly data the ARI/NLY correlation comes out at 0.65, strong. The link has loosened recently: the 1-year correlation (0.29) runs below the 3-year figure (0.65). The 5-year figure is 0.73, and annualized covariance runs at 356.6 %².
By 3-year correlation, NLY places #5 of the 10 assets tracked against ARI. On 12-month performance NLY holds a 14.0-point edge, +11.4% against +25.4%.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ARI vs NLY: side by side
| ARI (Apollo Commercial Real Estate Finance, Inc) | NLY (Annaly Capital Management Inc.) | |
|---|---|---|
| 1-year return | +11.4% | +25.4% |
| 5-year return | +21.3% | +30.4% |
| Volatility (ann.) | 23.8% | 22.9% |
| Beta vs S&P 500 | 0.64 | 0.81 |
| Max drawdown (3Y) | -24.7% | -26.3% |
| Market cap | $0.9B | $17.4B |
| P/E (trailing) | 8.5 | 5.6 |
| Dividend yield | 14.68% | 12.47% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARI | NLY |
|---|---|---|
| 2022 | -7.1% | -21.4% |
| 2023 | +24.5% | +4.9% |
| 2024 | -16.5% | +8.1% |
| 2025 | +23.8% | +40.0% |
| 2026 | +13.3% | +10.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARI and NLY good diversifiers for each other?
To a limited degree. At 0.65 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ARI and NLY?
As of 2026-08-27, the correlation of weekly returns between ARI and NLY is 0.65 over 3 years, 0.29 over 1 year and 0.73 over 5 years.
Is NLY a good diversifier for ARI?
To a limited degree. At 0.65 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.65 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ari-vs-nly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ari-vs-nly/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ARI correlations · NLY correlations
