JHS vs NLY: Correlation
Measured on weekly returns over the past three years, John Hancock Income Securities Trust (JHS) and Annaly Capital Management Inc. (NLY) carry a correlation of 0.64, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are JHS and NLY?
On 3 years of weekly data the JHS/NLY correlation comes out at 0.64, strong. Lately the two have drifted apart, with the 1-year correlation at 0.52 versus 0.64 over 3 years. The 5-year figure is 0.51, and annualized covariance runs at 132.9 %².
Within JHS's tracked universe of 11 assets, NLY comes in at #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months NLY outperformed by 25.6 percentage points (-0.2% for JHS against +25.4% for NLY). Note the risk asymmetry: NLY runs 2.5 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.
JHS vs NLY: side by side
| JHS (John Hancock Income Securities Trust) | NLY (Annaly Capital Management Inc.) | |
|---|---|---|
| 1-year return | -0.2% | +25.4% |
| 5-year return | -10.6% | +30.4% |
| Volatility (ann.) | 9.0% | 22.9% |
| Beta vs S&P 500 | 0.23 | 0.81 |
| Max drawdown (3Y) | -8.7% | -26.3% |
| Market cap | $0.1B | $17.4B |
| P/E (trailing) | 14.0 | 5.6 |
| Dividend yield | 5.59% | 12.47% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | JHS | NLY |
|---|---|---|
| 2022 | -26.5% | -21.4% |
| 2023 | +6.1% | +4.9% |
| 2024 | +8.0% | +8.1% |
| 2025 | +10.2% | +40.0% |
| 2026 | -4.3% | +10.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are JHS and NLY good diversifiers for each other?
To a limited degree. At 0.64 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 JHS and NLY?
The JHS/NLY correlation stands at 0.64 on a 3-year window (1 year: 0.52, 5 years: 0.51), computed from weekly returns as of 2026-08-27.
Is NLY a good diversifier for JHS?
To a limited degree. At 0.64 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 0.64 mean?
On the −1 to +1 scale, 0.64 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/jhs-vs-nly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/jhs-vs-nly/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: JHS correlations · NLY correlations
