Annaly Capital Correlations

NLY-PF Preferred Stock  USD 25.12  0.02  0.08%   
The correlation of Annaly Capital is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Annaly Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Annaly Capital Management moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Significant diversification

The correlation between Annaly Capital Management and NYA is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Annaly Capital Management and NYA in the same portfolio, assuming nothing else is changed.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Annaly Capital Management. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
  
The ability to find closely correlated positions to Annaly Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Annaly Capital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Annaly Capital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Annaly Capital Management to buy it.

Moving together with Annaly Preferred Stock

  0.72AGNCO AGNC Investment CorpPairCorr
  0.76AGNCM AGNC Investment CorpPairCorr
  0.75AGNCP AGNC Investment CorpPairCorr
  0.71PPERF Bank Mandiri PerseroPairCorr
  0.75PPERY Bank Mandiri PerseroPairCorr
  0.62BKRKY Bank RakyatPairCorr
  0.68PBCRY Bank Central AsiaPairCorr

Moving against Annaly Preferred Stock

  0.45NRZ New Residential InvePairCorr
  0.43STWD Starwood Property Trust Report 6th of March 2024 PairCorr

Related Correlations Analysis

NLY
AGNC
STWD
RITM
PSMT
NLY
0.910.80.810.27
NLY
AGNC
0.910.650.710.43
AGNC
STWD
0.80.650.74-0.2
STWD
RITM
0.810.710.740.27
RITM
PSMT
0.270.43-0.20.27
PSMT
NLY
AGNC
STWD
RITM
PSMT
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
AGNCNLY
RITMNLY
STWDNLY
RITMSTWD
RITMAGNC
STWDAGNC
  
High negative correlations   
PSMTSTWD

Risk-Adjusted Indicators

There is a big difference between Annaly Preferred Stock performing well and Annaly Capital Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Annaly Capital's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Annaly Capital without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Annaly Capital Corporate Management

Elected by the shareholders, the Annaly Capital's board of directors comprises two types of representatives: Annaly Capital inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Annaly. The board's role is to monitor Annaly Capital's management team and ensure that shareholders' interests are well served. Annaly Capital's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Annaly Capital's outside directors are responsible for providing unbiased perspectives on the board's policies.

Already Invested in Annaly Capital Management?

The danger of trading Annaly Capital Management is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Annaly Capital is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Annaly Capital. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Annaly Capital Management is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Annaly Capital Management. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Annaly Capital's price analysis, check to measure Annaly Capital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Annaly Capital is operating at the current time. Most of Annaly Capital's value examination focuses on studying past and present price action to predict the probability of Annaly Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Annaly Capital's price. Additionally, you may evaluate how the addition of Annaly Capital to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Annaly Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Annaly Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Annaly Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.