MFA vs. ARR

Last updated Jun 20, 2026

MFA (MFA Financial, Inc.) and ARR (ARMOUR Residential REIT, Inc.) are both stocks. Both operate in the REIT - Mortgage industry within the Real Estate sector. Over the past 10 years, MFA returned 1.15%/yr vs -3.83%/yr for ARR. A 0.53 correlation means they provide meaningful diversification when combined.

Performance

MFA vs. ARR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in MFA Financial, Inc. (MFA) and ARMOUR Residential REIT, Inc. (ARR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MFA achieves a 6.33% return, which is significantly higher than ARR's 2.82% return. Over the past 10 years, MFA has outperformed ARR with an annualized return of 1.15%, while ARR has yielded a comparatively lower -3.83% annualized return.

MFA

• 1D: 1.60%
• 1M: 0.21%
• YTD: 6.33%
• 6M: 5.69%
• 1Y: 17.48%
• 3Y*: 7.67%
• 5Y*: 0.22%
• 10Y*: 1.15%

ARR

• 1D: 0.48%
• 1M: 3.21%
• YTD: 2.82%
• 6M: 4.53%
• 1Y: 20.14%
• 3Y*: 2.67%
• 5Y*: -7.09%
• 10Y*: -3.83%

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

MFA vs. ARR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MFA MFA Financial, Inc.	6.33%	6.07%	2.63%	30.66%	-37.20%	27.71%	-40.87%	27.54%	-5.85%	14.30%
ARR ARMOUR Residential REIT, Inc.	2.82%	11.69%	13.17%	-15.43%	-32.01%	1.11%	-33.13%	-2.07%	-11.97%	30.13%

Correlation

The correlation between MFA and ARR is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Dec 3, 2007	0.53

The correlation between MFA and ARR shifts across timeframes, from 0.53 (all time) to 0.69 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS MFA : $1.70 ARR : $2.29
PE Ratio MFA : 5.60 ARR : 7.32
PEG Ratio MFA : 0.26 ARR : 0.03
PS Ratio MFA : 2.19 ARR : 1.88
Total Revenue (TTM) MFA : $343.42M ARR : $937.04M
Gross Profit (TTM) MFA : $413.35M ARR : $907.29M
EBITDA (TTM) MFA : $341.51M ARR : $800.90M

Return for Risk

MFA vs. ARR — Risk / Return Rank

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

MFA

MFA Risk / Return Rank: 64
MFA Sharpe Ratio Rank: 67
MFA Sortino Ratio Rank: 60
MFA Omega Ratio Rank: 58
MFA Calmar Ratio Rank: 69
MFA Martin Ratio Rank: 68

ARR

ARR Risk / Return Rank: 65
ARR Sharpe Ratio Rank: 69
ARR Sortino Ratio Rank: 61
ARR Omega Ratio Rank: 61
ARR Calmar Ratio Rank: 66
ARR Martin Ratio Rank: 70

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.

MFA vs. ARR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for MFA Financial, Inc. (MFA) and ARMOUR Residential REIT, Inc. (ARR). 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.

	MFA	ARR	Difference
Sharpe ratio: Return per unit of total volatility	0.78	0.85	-0.08
Sortino ratio: Return per unit of downside risk	1.18	1.22	-0.04
Omega ratio: Gain probability vs. loss probability	1.15	1.16	-0.02
Calmar ratio: Return relative to maximum drawdown	1.44	1.20	+0.23
Martin ratio: Return relative to average drawdown	3.15	3.33	-0.18

MFA vs. ARR - Sharpe Ratio Comparison

The current MFA Sharpe Ratio is 0.78, which is comparable to the ARR Sharpe Ratio of 0.85. The chart below compares the historical Sharpe Ratios of MFA and ARR, 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

MFA vs. ARR - Drawdown Comparison

The maximum MFA drawdown since its inception was -95.52%, which is greater than ARR's maximum drawdown of -80.12%. Use the drawdown chart below to compare losses from any high point for MFA and ARR.

Drawdown Indicators

	MFA	ARR	Difference
Max Drawdown Largest peak-to-trough decline	-95.52%	-80.12%	-15.40%
Max Drawdown (1Y) Largest decline over 1 year	-12.22%	-16.79%	+4.57%
Max Drawdown (3Y) Largest decline over 3 years	-31.62%	-45.79%	+14.17%
Max Drawdown (5Y) Largest decline over 5 years	-56.54%	-65.42%	+8.88%
Max Drawdown (10Y) Largest decline over 10 years	-95.52%	-78.34%	-17.18%
Current Drawdown Current decline from peak	-31.67%	-61.65%	+29.98%
Average Drawdown Average peak-to-trough decline	-21.55%	-33.18%	+11.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.56%	6.07%	-0.51%

Volatility

MFA vs. ARR - Volatility Comparison

MFA Financial, Inc. (MFA) has a higher volatility of 6.62% compared to ARMOUR Residential REIT, Inc. (ARR) at 6.21%. This indicates that MFA's price experiences larger fluctuations and is considered to be riskier than ARR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MFA	ARR	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.62%	6.21%	+0.41%
Volatility (6M) Calculated over the trailing 6-month period	17.24%	18.13%	-0.89%
Volatility (1Y) Calculated over the trailing 1-year period	22.64%	23.79%	-1.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.59%	29.09%	+2.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	84.77%	34.24%	+50.53%

Dividends

MFA vs. ARR - Dividend Comparison

MFA's dividend yield for the trailing twelve months is around 15.11%, less than ARR's 17.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARR ARMOUR Residential REIT, Inc.	17.18%	16.28%	15.27%	25.88%	21.31%	12.23%	11.12%	12.09%	11.12%	8.86%	13.92%	17.88%
MFA MFA Financial, Inc.	15.11%	15.47%	13.74%	12.42%	16.95%	8.44%	8.35%	10.46%	11.98%	10.10%	10.48%	12.12%

Financials

Frequently Asked Questions

Can I hold both MFA and ARR in my portfolio?

MFA and ARR have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MFA or ARR?

MFA has higher volatility (6.62%) compared to ARR (6.21%). In terms of maximum drawdown, MFA dropped -95.52% vs ARR's -80.12%.

Which has better risk-adjusted returns?

ARR currently has the higher Sharpe Ratio (0.85 vs 0.78), 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.