NLY vs QQQ: Correlation
Annaly Capital Management Inc. (NLY) and Invesco QQQ Trust (QQQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NLY and QQQ?
On 3 years of weekly data the NLY/QQQ correlation comes out at 0.40, moderate. The relationship has been stable: the 1-year correlation (0.34) sits close to the 3-year figure. The 5-year figure is 0.50, and annualized covariance runs at 181.2 %².
Within NLY's tracked universe of 26 assets, QQQ comes in at #21 by 3-year correlation. Neither side won the trailing year by much: +25.4% against +26.3%.
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 QQQ: side by side
| NLY (Annaly Capital Management Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +25.4% | +26.3% |
| 5-year return | +30.4% | +95.4% |
| Volatility (ann.) | 22.9% | 19.6% |
| Beta vs S&P 500 | 0.81 | 1.28 |
| Max drawdown (3Y) | -26.3% | -22.8% |
| Market cap | $17.4B | – |
| P/E (trailing) | 5.6 | – |
| Dividend yield | 12.47% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | US Listed | ETF · US Growth & Tech |
QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | NLY | QQQ |
|---|---|---|
| 2022 | -21.4% | -32.6% |
| 2023 | +4.9% | +54.9% |
| 2024 | +8.1% | +25.6% |
| 2025 | +40.0% | +20.8% |
| 2026 | +10.2% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NLY and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between NLY and QQQ?
As of 2026-08-27, the correlation of weekly returns between NLY and QQQ is 0.40 over 3 years, 0.34 over 1 year and 0.50 over 5 years.
Is QQQ a good diversifier for NLY?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
A reading of 0.40 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
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Related comparisons
Hubs: NLY correlations · QQQ correlations
