ARR vs SPY: Correlation
ARMOUR Residential REIT, Inc. (ARR) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.46.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARR and SPY?
Over the past 3 years, ARR and SPY moved with a correlation of 0.46, which is moderate. The past 12 months show a weaker link (0.26) than the 3-year average (0.46). Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 193.4 %².
Within ARR's tracked universe of 13 assets, SPY comes in at #7 by 3-year correlation. The trailing year gives ARR the advantage: +29.0% versus +20.6%, a 8.4-point spread. Note the risk asymmetry: ARR runs 2.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 SPY: side by side
| ARR (ARMOUR Residential REIT, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +29.0% | +20.6% |
| 5-year return | -29.0% | +82.4% |
| Volatility (ann.) | 29.0% | 14.5% |
| Beta vs S&P 500 | 0.93 | 1.00 |
| Max drawdown (3Y) | -44.3% | -18.8% |
| Market cap | $2.3B | – |
| P/E (trailing) | 3.7 | – |
| Dividend yield | 17.76% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | ARR | SPY |
|---|---|---|
| 2022 | -32.0% | -18.2% |
| 2023 | -15.4% | +26.2% |
| 2024 | +13.2% | +24.9% |
| 2025 | +11.7% | +17.7% |
| 2026 | +3.6% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARR and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.46 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ARR and SPY?
The ARR/SPY correlation stands at 0.46 on a 3-year window (1 year: 0.26, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for ARR?
Yes, to a useful degree: a correlation of 0.46 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.46 mean?
A reading of 0.46 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: ARR correlations · SPY correlations
