NLY vs RITM: Correlation
Annaly Capital Management Inc. (NLY) and Rithm Capital Corp. (RITM) show a strong relationship: their 3-year correlation of weekly returns is 0.69.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NLY and RITM?
Over the past 3 years, NLY and RITM moved with a correlation of 0.69, which is strong. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 331.5 %².
Among the 26 assets we track against NLY, RITM ranks #9 by 3-year correlation. Correlation aside, the last 12 months split them widely, with NLY ahead by 36.0 points (+25.4% versus -10.6%).
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 RITM: side by side
| NLY (Annaly Capital Management Inc.) | RITM (Rithm Capital Corp.) | |
|---|---|---|
| 1-year return | +25.4% | -10.6% |
| 5-year return | +30.4% | +53.6% |
| Volatility (ann.) | 22.9% | 20.9% |
| Beta vs S&P 500 | 0.81 | 0.67 |
| Max drawdown (3Y) | -26.3% | -27.3% |
| Market cap | $17.4B | $5.6B |
| P/E (trailing) | 5.6 | 16.7 |
| Dividend yield | 12.47% | 9.92% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NLY | RITM |
|---|---|---|
| 2022 | -21.4% | -14.4% |
| 2023 | +4.9% | +45.6% |
| 2024 | +8.1% | +11.1% |
| 2025 | +40.0% | +10.1% |
| 2026 | +10.2% | -3.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NLY and RITM good diversifiers for each other?
Only partially. A correlation of 0.69 means NLY and RITM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between NLY and RITM?
As of 2026-08-27, the correlation of weekly returns between NLY and RITM is 0.69 over 3 years, 0.71 over 1 year and 0.75 over 5 years.
Is RITM a good diversifier for NLY?
Only partially. A correlation of 0.69 means NLY and RITM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.69 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.
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Related comparisons
Hubs: NLY correlations · RITM correlations
