MFA vs RWT: Correlation
MFA Financial, Inc. (MFA) and Redwood Trust, Inc. (RWT) show a strong relationship: their 3-year correlation of weekly returns is 0.61.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MFA and RWT?
On 3 years of weekly data the MFA/RWT correlation comes out at 0.61, strong. Recent behaviour matches the longer record: 0.54 over 1 year against 0.61 over 3. The 5-year figure is 0.69, and annualized covariance runs at 493.7 %².
By 3-year correlation, RWT places #12 of the 23 assets tracked against MFA. The trailing year gives MFA the advantage: +2.8% versus -11.8%, a 14.6-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.
MFA vs RWT: side by side
| MFA (MFA Financial, Inc.) | RWT (Redwood Trust, Inc.) | |
|---|---|---|
| 1-year return | +2.8% | -11.8% |
| 5-year return | -8.1% | -35.7% |
| Volatility (ann.) | 25.6% | 31.6% |
| Beta vs S&P 500 | 0.64 | 0.87 |
| Max drawdown (3Y) | -31.6% | -33.8% |
| Market cap | $0.9B | $0.6B |
| P/E (trailing) | 8.8 | – |
| Dividend yield | 16.36% | 15.62% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MFA | RWT |
|---|---|---|
| 2022 | -37.2% | -42.3% |
| 2023 | +30.7% | +21.6% |
| 2024 | +2.6% | -2.6% |
| 2025 | +6.1% | -4.1% |
| 2026 | +2.6% | -10.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MFA and RWT good diversifiers for each other?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MFA and RWT?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.54 over the last year and 0.69 over 5 years.
Is RWT a good diversifier for MFA?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.61 mean?
A reading of 0.61 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mfa-vs-rwt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mfa-vs-rwt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MFA correlations · RWT correlations
