MFA vs STWD: Correlation
MFA Financial, Inc. (MFA) and STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc. (STWD) show a strong relationship: their 3-year correlation of weekly returns is 0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MFA and STWD?
Across a 3-year window, the weekly returns of MFA and STWD correlate at 0.72, strong. Little has changed lately, as the 1-year reading of 0.67 lands near the 3-year figure. Stretching to 5 years gives 0.73, with an annualized covariance of 355.7 %².
In MFA's tracked universe of 23 assets, STWD sits right near the top at #3. Over the last 12 months MFA came out ahead by 14.6 percentage points (+2.8% against -11.8%).
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 STWD: side by side
| MFA (MFA Financial, Inc.) | STWD (STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc.) | |
|---|---|---|
| 1-year return | +2.8% | -11.8% |
| 5-year return | -8.1% | +0.5% |
| Volatility (ann.) | 25.6% | 19.3% |
| Beta vs S&P 500 | 0.64 | 0.65 |
| Max drawdown (3Y) | -31.6% | -15.8% |
| Market cap | $0.9B | $6.1B |
| P/E (trailing) | 8.8 | 27.0 |
| Dividend yield | 16.36% | 12.07% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MFA | STWD |
|---|---|---|
| 2022 | -37.2% | -17.3% |
| 2023 | +30.7% | +26.7% |
| 2024 | +2.6% | -0.6% |
| 2025 | +6.1% | +4.9% |
| 2026 | +2.6% | -6.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MFA and STWD good diversifiers for each other?
Somewhat, no more. With 0.72 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MFA and STWD?
The MFA/STWD correlation stands at 0.72 on a 3-year window (1 year: 0.67, 5 years: 0.73), computed from weekly returns as of 2026-08-27.
Is STWD a good diversifier for MFA?
Somewhat, no more. With 0.72 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.72 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/mfa-vs-stwd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/mfa-vs-stwd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MFA correlations · STWD correlations
