NLY vs ORC: Correlation
Measured on weekly returns over the past three years, Annaly Capital Management Inc. (NLY) and Orchid Island Capital, Inc. (ORC) carry a correlation of 0.84, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NLY and ORC?
Across a 3-year window, the weekly returns of NLY and ORC correlate at 0.84, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.70 versus 0.84 over 3 years. Stretching to 5 years gives 0.77, with an annualized covariance of 500.9 %².
Within NLY's tracked universe of 26 assets, ORC comes in at #5 by 3-year correlation. The trailing year gives NLY the advantage: +25.4% versus +15.7%, a 9.7-point spread.
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.
NLY vs ORC: side by side
| NLY (Annaly Capital Management Inc.) | ORC (Orchid Island Capital, Inc.) | |
|---|---|---|
| 1-year return | +25.4% | +15.7% |
| 5-year return | +30.4% | -33.9% |
| Volatility (ann.) | 22.9% | 26.1% |
| Beta vs S&P 500 | 0.81 | 0.84 |
| Max drawdown (3Y) | -26.3% | -36.6% |
| Market cap | $17.4B | $1.3B |
| P/E (trailing) | 5.6 | 3.8 |
| Dividend yield | 12.47% | 20.69% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NLY | ORC |
|---|---|---|
| 2022 | -21.4% | -44.3% |
| 2023 | +4.9% | -3.1% |
| 2024 | +8.1% | +9.9% |
| 2025 | +40.0% | +12.7% |
| 2026 | +10.2% | +4.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NLY and ORC good diversifiers for each other?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between NLY and ORC?
The NLY/ORC correlation stands at 0.84 on a 3-year window (1 year: 0.70, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is ORC a good diversifier for NLY?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.84 mean?
A reading of 0.84 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/nly-vs-orc.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nly-vs-orc/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: NLY correlations · ORC correlations
