NLY vs VXZ: Correlation
How closely do Annaly Capital Management Inc. (NLY) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) trade together? Their weekly returns over three years give a correlation of -0.55, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NLY and VXZ?
Over the past 3 years, NLY and VXZ moved with a correlation of -0.55, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.50) sits close to the 3-year figure. Over 5 years the correlation is -0.52, and the annualized covariance of weekly returns is -322.7 %².
VXZ is close to the least connected end of NLY's tracked universe, ranking #26 of 26. Correlation aside, the last 12 months split them widely, with NLY ahead by 41.5 points (+25.4% versus -16.1%).
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 VXZ: side by side
| NLY (Annaly Capital Management Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +25.4% | -16.1% |
| 5-year return | +30.4% | -53.1% |
| Volatility (ann.) | 22.9% | 25.6% |
| Beta vs S&P 500 | 0.81 | -1.31 |
| Max drawdown (3Y) | -26.3% | -36.4% |
| Market cap | $17.4B | – |
| P/E (trailing) | 5.6 | – |
| Dividend yield | 12.47% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NLY | VXZ |
|---|---|---|
| 2022 | -21.4% | +0.5% |
| 2023 | +4.9% | -44.0% |
| 2024 | +8.1% | -12.7% |
| 2025 | +40.0% | +5.7% |
| 2026 | +10.2% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NLY and VXZ good diversifiers for each other?
Yes: at -0.55, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between NLY and VXZ?
As of 2026-08-27, the correlation of weekly returns between NLY and VXZ is -0.55 over 3 years, -0.50 over 1 year and -0.52 over 5 years.
Is VXZ a good diversifier for NLY?
Yes: at -0.55, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.55 mean?
On the −1 to +1 scale, -0.55 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/nly-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nly-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NLY correlations · VXZ correlations
