ARR vs NLY: Correlation
Measured on weekly returns over the past three years, ARMOUR Residential REIT, Inc. (ARR) and Annaly Capital Management Inc. (NLY) carry a correlation of 0.85, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARR and NLY?
On 3 years of weekly data the ARR/NLY correlation comes out at 0.85, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.82 over 1 year against 0.85 over 3. The 5-year figure is 0.86, and annualized covariance runs at 563.1 %².
Within ARR's tracked universe of 13 assets, NLY comes in at #4 by 3-year correlation. Neither side won the trailing year by much: +29.0% 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.
ARR vs NLY: side by side
| ARR (ARMOUR Residential REIT, Inc.) | NLY (Annaly Capital Management Inc.) | |
|---|---|---|
| 1-year return | +29.0% | +25.4% |
| 5-year return | -29.0% | +30.4% |
| Volatility (ann.) | 29.0% | 22.9% |
| Beta vs S&P 500 | 0.93 | 0.81 |
| Max drawdown (3Y) | -44.3% | -26.3% |
| Market cap | $2.3B | $17.4B |
| P/E (trailing) | 3.7 | 5.6 |
| Dividend yield | 17.76% | 12.47% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARR | NLY |
|---|---|---|
| 2022 | -32.0% | -21.4% |
| 2023 | -15.4% | +4.9% |
| 2024 | +13.2% | +8.1% |
| 2025 | +11.7% | +40.0% |
| 2026 | +3.6% | +10.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARR and NLY good diversifiers for each other?
No. With a correlation of 0.85, ARR and NLY move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ARR and NLY?
The ARR/NLY correlation stands at 0.85 on a 3-year window (1 year: 0.82, 5 years: 0.86), computed from weekly returns as of 2026-08-27.
Is NLY a good diversifier for ARR?
No. With a correlation of 0.85, ARR and NLY move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.85 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/arr-vs-nly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/arr-vs-nly/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ARR correlations · NLY correlations
