Redwood Trust Correlations

RWT Stock

USD 6.40 0.01 0.16%

The current 90-days correlation between Redwood Trust and Two Harbors Investments is 0.04 (i.e., Significant diversification). The correlation of Redwood Trust is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Redwood Trust Correlation With Market

Good diversification

The correlation between Redwood Trust and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Redwood Trust and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Redwood Trust. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.

For more information on how to buy Redwood Stock please use our How to Invest in Redwood Trust guide.

Moving against Redwood Stock

0.32

ARR-PC

ARMOUR Residential REIT

Pair Corr

Related Correlations Analysis

	TWO	MITT	IVR	MFA	NYMT	CIM	RC	GPMT	PMT	AJX
TWO		0.58	0.93	0.77	0.81	-0.17	-0.6	0.16	0.71	0.0	TWO
MITT	0.58		0.58	0.69	0.7	-0.07	-0.38	0.06	0.95	0.0	MITT
IVR	0.93	0.58		0.78	0.73	-0.01	-0.38	0.22	0.68	0.0	IVR
MFA	0.77	0.69	0.78		0.74	0.09	-0.54	0.23	0.75	0.0	MFA
NYMT	0.81	0.7	0.73	0.74		-0.32	-0.65	-0.15	0.77	0.0	NYMT
CIM	-0.17	-0.07	-0.01	0.09	-0.32		0.42	0.55	-0.04	0.0	CIM
RC	-0.6	-0.38	-0.38	-0.54	-0.65	0.42		0.23	-0.48	0.0	RC
GPMT	0.16	0.06	0.22	0.23	-0.15	0.55	0.23		0.08	0.0	GPMT
PMT	0.71	0.95	0.68	0.75	0.77	-0.04	-0.48	0.08		0.0	PMT
AJX	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0		AJX
	TWO	MITT	IVR	MFA	NYMT	CIM	RC	GPMT	PMT	AJX

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

Please upgrade your account to get full access to Macroaxis premium features

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

PMT	+ 0.95	MITT
IVR	+ 0.93	TWO
NYMT	+ 0.81	TWO
MFA	+ 0.78	IVR
MFA	+ 0.77	TWO
PMT	+ 0.77	NYMT

High negative correlations

RC	- 0.65	NYMT
RC	- 0.6	TWO
RC	- 0.54	MFA
PMT	- 0.48	RC
RC	- 0.38	IVR
RC	- 0.38	MITT

Risk-Adjusted Indicators

There is a big difference between Redwood Stock performing well and Redwood Trust Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Redwood Trust's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
TWO	1.11	0.35	0.28	0.38	1.02	(1.27)	2.32	(1.60)	10.25
MITT	1.08	0.22	0.16	8.58	1.42	(1.20)	1.94	(2.35)	6.88
IVR	1.15	0.16	0.13	0.20	1.40	(1.25)	2.32	(2.16)	8.74
MFA	1.14	0.12	0.08	0.08	1.66	(1.06)	2.45	(1.99)	7.26
NYMT	1.60	0.22	0.12	0.19	1.75	(1.72)	3.87	(2.71)	10.06
CIM	1.21	(0.14)	0.00	0.30	0.00	0.00	2.63	(3.19)	10.76
RC	1.90	(0.27)	0.00	(0.25)	0.00	0.00	2.34	(4.10)	31.28
GPMT	1.87	(0.01)	0.00	(0.13)	0.00	0.00	3.91	(3.45)	14.11
PMT	1.00	0.26	0.33	4.79	0.76	(1.29)	2.30	(1.58)	7.56
AJX	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC