NLY-PG - Risk

Elevated Business & Solvency Risk

Caution: In addition to price volatility, there are balance sheet risks due to higher debt or weaker liquidity (Health Score: 45/100).

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

5/7 Elevated

5 / 7 SRI Price Fluctuation & Beta

Above-average volatility. Suitable for experienced investors with high risk tolerance (5+ years horizon). Moves approx. 1.3x as much as the broader market.

Beta (Market Relation)

1.28x

Above average

Volatility (5Y p.a.)

12.0% p.a.

5-Year Horizon

Max Drawdown (5Y)

-23.9%

5-Year Horizon

Sharpe Ratio

-0.23

Return / Risk

Elevated Risk / Growth: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	0%
3 Years	8.2%	-9.4%	-0.24	+0.6%
5 Years	12.0%	-23.9%	-0.23	-0.1%
10 Years	32.9%	-61.9%	-0.07	—

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

Critical leverage: Debt-to-Equity is at 738%.

Strong cyclicality: The business model is sensitive to economic downturns.

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (12.0% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -61.9% in the extended horizon.