NLY vs STWD: Correlation
How closely do Annaly Capital Management Inc. (NLY) and STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc. (STWD) trade together? Their weekly returns over three years give a correlation of 0.73, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NLY and STWD?
On 3 years of weekly data the NLY/STWD correlation comes out at 0.73, strong. Lately the two have drifted apart, with the 1-year correlation at 0.58 versus 0.73 over 3 years. The 5-year figure is 0.75, and annualized covariance runs at 321.6 %².
Among the 26 assets we track against NLY, STWD ranks #8 by 3-year correlation. Correlation aside, the last 12 months split them widely, with NLY ahead by 37.2 points (+25.4% versus -11.8%).
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 STWD: side by side
| NLY (Annaly Capital Management Inc.) | STWD (STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc.) | |
|---|---|---|
| 1-year return | +25.4% | -11.8% |
| 5-year return | +30.4% | +0.5% |
| Volatility (ann.) | 22.9% | 19.3% |
| Beta vs S&P 500 | 0.81 | 0.65 |
| Max drawdown (3Y) | -26.3% | -15.8% |
| Market cap | $17.4B | $6.1B |
| P/E (trailing) | 5.6 | 27.0 |
| Dividend yield | 12.47% | 12.07% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NLY | STWD |
|---|---|---|
| 2022 | -21.4% | -17.3% |
| 2023 | +4.9% | +26.7% |
| 2024 | +8.1% | -0.6% |
| 2025 | +40.0% | +4.9% |
| 2026 | +10.2% | -6.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NLY and STWD good diversifiers for each other?
To a limited degree. At 0.73 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 NLY and STWD?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.58 over the last year and 0.75 over 5 years.
Is STWD a good diversifier for NLY?
To a limited degree. At 0.73 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 0.73 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/nly-vs-stwd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/nly-vs-stwd/)
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Related comparisons
Hubs: NLY correlations · STWD correlations
