FLG vs VLY: Correlation
Measured on weekly returns over the past three years, Flagstar Bank, N.A. (FLG) and Valley National Bancorp (VLY) carry a correlation of 0.61, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FLG and VLY?
Across a 3-year window, the weekly returns of FLG and VLY correlate at 0.61, strong. Lately the two have moved closer together, with the 1-year correlation at 0.75 versus 0.61 over 3 years. Stretching to 5 years gives 0.57, with an annualized covariance of 1047.1 %².
Few assets follow FLG as closely as VLY, which ranks #1 of 11 tracked partners. Correlation aside, the last 12 months split them widely, with VLY ahead by 33.0 points (+4.9% versus +37.9%). Note the risk asymmetry: FLG runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
FLG vs VLY: side by side
| FLG (Flagstar Bank, N.A.) | VLY (Valley National Bancorp) | |
|---|---|---|
| 1-year return | +4.9% | +37.9% |
| 5-year return | -57.2% | +32.9% |
| Volatility (ann.) | 52.0% | 32.8% |
| Beta vs S&P 500 | 0.84 | 0.93 |
| Max drawdown (3Y) | -77.9% | -39.5% |
| Market cap | $5.6B | $7.7B |
| P/E (trailing) | 448.3 | 11.9 |
| Dividend yield | 0.29% | 3.12% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FLG | VLY |
|---|---|---|
| 2022 | -24.5% | -14.6% |
| 2023 | +26.9% | +0.7% |
| 2024 | -69.1% | -11.9% |
| 2025 | +35.4% | +34.8% |
| 2026 | +7.0% | +21.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FLG and VLY good diversifiers for each other?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between FLG and VLY?
The FLG/VLY correlation stands at 0.61 on a 3-year window (1 year: 0.75, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is VLY a good diversifier for FLG?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.61 mean?
On the −1 to +1 scale, 0.61 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/flg-vs-vly.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/flg-vs-vly/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: FLG correlations · VLY correlations
