DX vs. NLY

Last updated Jun 20, 2026

DX (Dynex Capital, Inc.) and NLY (Annaly Capital Management, Inc.) are both stocks. Both operate in the REIT - Mortgage industry within the Real Estate sector. Over the past 10 years, DX returned 7.57%/yr vs 6.01%/yr for NLY. At a 0.36 correlation, their price movements are largely independent.

Performance

DX vs. NLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dynex Capital, Inc. (DX) and Annaly Capital Management, Inc. (NLY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DX achieves a 0.54% return, which is significantly lower than NLY's 2.71% return. Over the past 10 years, DX has outperformed NLY with an annualized return of 7.57%, while NLY has yielded a comparatively lower 6.01% annualized return.

DX

• 1D: 0.08%
• 1M: 2.83%
• YTD: 0.54%
• 6M: 1.85%
• 1Y: 25.07%
• 3Y*: 17.21%
• 5Y*: 5.09%
• 10Y*: 7.57%

NLY

• 1D: 0.23%
• 1M: 3.01%
• YTD: 2.71%
• 6M: 4.34%
• 1Y: 32.55%
• 3Y*: 17.28%
• 5Y*: 3.59%
• 10Y*: 6.01%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DX vs. NLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DX Dynex Capital, Inc.	0.54%	29.48%	13.64%	11.91%	-15.39%	2.25%	17.09%	11.12%	-8.46%	13.80%
NLY Annaly Capital Management, Inc.	2.71%	40.00%	8.07%	4.94%	-21.41%	2.48%	2.38%	7.22%	-7.22%	31.92%

Correlation

The correlation between DX and NLY is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since Oct 8, 1997	0.36

Over the past year, DX and NLY have become more correlated (0.80) than their long-term average of 0.36, meaning their price movements have been converging.

Fundamentals

Market Cap DX : $2.61B NLY : $16.09B
EPS DX : $1.59 NLY : $3.28
PE Ratio DX : 8.20 NLY : 6.77
PS Ratio DX : 2.85 NLY : 2.84
PB Ratio DX : 1.00 NLY : 1.11
Total Revenue (TTM) DX : $695.85M NLY : $5.21B
Gross Profit (TTM) DX : $695.85M NLY : $5.17B
EBITDA (TTM) DX : $900.29M NLY : $5.65B

Return for Risk

DX vs. NLY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DX

DX Risk / Return Rank: 76
DX Sharpe Ratio Rank: 81
DX Sortino Ratio Rank: 77
DX Omega Ratio Rank: 75
DX Calmar Ratio Rank: 72
DX Martin Ratio Rank: 76

NLY

NLY Risk / Return Rank: 81
NLY Sharpe Ratio Rank: 85
NLY Sortino Ratio Rank: 82
NLY Omega Ratio Rank: 80
NLY Calmar Ratio Rank: 77
NLY Martin Ratio Rank: 81

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DX vs. NLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dynex Capital, Inc. (DX) and Annaly Capital Management, Inc. (NLY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	DX	NLY	Difference
Sharpe ratio: Return per unit of total volatility	1.43	1.71	-0.28
Sortino ratio: Return per unit of downside risk	2.02	2.37	-0.36
Omega ratio: Gain probability vs. loss probability	1.25	1.30	-0.05
Calmar ratio: Return relative to maximum drawdown	1.65	2.20	-0.55
Martin ratio: Return relative to average drawdown	4.98	6.39	-1.41

DX vs. NLY - Sharpe Ratio Comparison

The current DX Sharpe Ratio is 1.43, which is comparable to the NLY Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of DX and NLY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

DX vs. NLY - Drawdown Comparison

The maximum DX drawdown since its inception was -99.12%, which is greater than NLY's maximum drawdown of -60.09%. Use the drawdown chart below to compare losses from any high point for DX and NLY.

Drawdown Indicators

	DX	NLY	Difference
Max Drawdown Largest peak-to-trough decline	-99.12%	-60.09%	-39.03%
Max Drawdown (1Y) Largest decline over 1 year	-15.27%	-14.88%	-0.39%
Max Drawdown (3Y) Largest decline over 3 years	-25.81%	-26.70%	+0.89%
Max Drawdown (5Y) Largest decline over 5 years	-35.98%	-50.46%	+14.48%
Max Drawdown (10Y) Largest decline over 10 years	-56.76%	-60.09%	+3.33%
Current Drawdown Current decline from peak	-31.19%	-5.88%	-25.31%
Average Drawdown Average peak-to-trough decline	-56.78%	-13.82%	-42.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.04%	5.11%	-0.07%

Volatility

DX vs. NLY - Volatility Comparison

The current volatility for Dynex Capital, Inc. (DX) is 5.16%, while Annaly Capital Management, Inc. (NLY) has a volatility of 6.36%. This indicates that DX experiences smaller price fluctuations and is considered to be less risky than NLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DX	NLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.16%	6.36%	-1.20%
Volatility (6M) Calculated over the trailing 6-month period	13.78%	15.42%	-1.64%
Volatility (1Y) Calculated over the trailing 1-year period	17.67%	19.14%	-1.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.85%	25.61%	-1.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.88%	28.15%	+1.73%

Dividends

DX vs. NLY - Dividend Comparison

DX's dividend yield for the trailing twelve months is around 15.62%, more than NLY's 12.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DX Dynex Capital, Inc.	15.62%	14.13%	11.46%	12.46%	12.26%	9.34%	9.33%	11.87%	12.59%	10.27%	12.32%	15.12%
NLY Annaly Capital Management, Inc.	12.61%	12.52%	14.21%	13.42%	16.70%	11.25%	10.77%	11.15%	12.22%	10.09%	12.04%	12.79%

Financials

Frequently Asked Questions

Can I hold both DX and NLY in my portfolio?

DX and NLY have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DX or NLY?

NLY has higher volatility (6.36%) compared to DX (5.16%). In terms of maximum drawdown, DX dropped -99.12% vs NLY's -60.09%.

Which has better risk-adjusted returns?

NLY currently has the higher Sharpe Ratio (1.71 vs 1.43), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.