ARR vs ORC: Correlation
How closely do ARMOUR Residential REIT, Inc. (ARR) and Orchid Island Capital, Inc. (ORC) trade together? Their weekly returns over three years give a correlation of 0.87, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARR and ORC?
On 3 years of weekly data the ARR/ORC correlation comes out at 0.87, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.77 lands near the 3-year figure. The 5-year figure is 0.82, and annualized covariance runs at 658.8 %².
ORC is one of the assets that tracks ARR most closely: it ranks #2 out of the 13 assets we track against ARR. The trailing year gives ARR the advantage: +29.0% versus +15.7%, a 13.3-point spread.
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.
ARR vs ORC: side by side
| ARR (ARMOUR Residential REIT, Inc.) | ORC (Orchid Island Capital, Inc.) | |
|---|---|---|
| 1-year return | +29.0% | +15.7% |
| 5-year return | -29.0% | -33.9% |
| Volatility (ann.) | 29.0% | 26.1% |
| Beta vs S&P 500 | 0.93 | 0.84 |
| Max drawdown (3Y) | -44.3% | -36.6% |
| Market cap | $2.3B | $1.3B |
| P/E (trailing) | 3.7 | 3.8 |
| Dividend yield | 17.76% | 20.69% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARR | ORC |
|---|---|---|
| 2022 | -32.0% | -44.3% |
| 2023 | -15.4% | -3.1% |
| 2024 | +13.2% | +9.9% |
| 2025 | +11.7% | +12.7% |
| 2026 | +3.6% | +4.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARR and ORC good diversifiers for each other?
No. With a correlation of 0.87, ARR and ORC move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ARR and ORC?
Using weekly returns as of 2026-08-27: 0.87 over 3 years, with 0.77 over the last year and 0.82 over 5 years.
Is ORC a good diversifier for ARR?
No. With a correlation of 0.87, ARR and ORC move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.87 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/arr-vs-orc.json
Drop this badge in a README or notebook; it updates with the data:
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Related comparisons
Hubs: ARR correlations · ORC correlations
