Redwood Trust Preferred Stock Market Value
| RWT-PA Preferred Stock | 25.76 0.18 0.70% |
| Symbol | Redwood |
Redwood Trust 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Redwood Trust's preferred stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Redwood Trust.
| 10/22/2024 |
| 12/21/2024 |
If you would invest 0.00 in Redwood Trust on October 22, 2024 and sell it all today you would earn a total of 0.00 from holding Redwood Trust or generate 0.0% return on investment in Redwood Trust over 60 days. Redwood Trust is related to or competes with Ready Capital, PennyMac Mortgage, MFA Financial, and Arbor Realty. More
Redwood Trust Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Redwood Trust's preferred stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Redwood Trust upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.7248 | |||
| Information Ratio | 0.0376 | |||
| Maximum Drawdown | 3.29 | |||
| Value At Risk | (1.34) | |||
| Potential Upside | 1.31 |
Redwood Trust Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Redwood Trust's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Redwood Trust's standard deviation. In reality, there are many statistical measures that can use Redwood Trust historical prices to predict the future Redwood Trust's volatility.| Risk Adjusted Performance | 0.0646 | |||
| Jensen Alpha | 0.0466 | |||
| Total Risk Alpha | 0.029 | |||
| Sortino Ratio | 0.0367 | |||
| Treynor Ratio | 0.4945 |
Redwood Trust Backtested Returns
At this point, Redwood Trust is very steady. Redwood Trust maintains Sharpe Ratio (i.e., Efficiency) of 0.0516, which implies the firm had a 0.0516% return per unit of risk over the last 3 months. We have found thirty technical indicators for Redwood Trust, which you can use to evaluate the volatility of the company. Please check Redwood Trust's Risk Adjusted Performance of 0.0646, coefficient of variation of 1204.42, and Semi Deviation of 0.6 to confirm if the risk estimate we provide is consistent with the expected return of 0.0362%. Redwood Trust has a performance score of 4 on a scale of 0 to 100. The company holds a Beta of 0.0987, which implies not very significant fluctuations relative to the market. As returns on the market increase, Redwood Trust's returns are expected to increase less than the market. However, during the bear market, the loss of holding Redwood Trust is expected to be smaller as well. Redwood Trust right now holds a risk of 0.7%. Please check Redwood Trust semi variance, day typical price, and the relationship between the maximum drawdown and accumulation distribution , to decide if Redwood Trust will be following its historical price patterns.
Auto-correlation | -0.08 |
Very weak reverse predictability
Redwood Trust has very weak reverse predictability. Overlapping area represents the amount of predictability between Redwood Trust time series from 22nd of October 2024 to 21st of November 2024 and 21st of November 2024 to 21st of December 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Redwood Trust price movement. The serial correlation of -0.08 indicates that barely 8.0% of current Redwood Trust price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.08 | |
| Spearman Rank Test | -0.22 | |
| Residual Average | 0.0 | |
| Price Variance | 0.04 |
Redwood Trust lagged returns against current returns
Autocorrelation, which is Redwood Trust preferred stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Redwood Trust's preferred stock expected returns. We can calculate the autocorrelation of Redwood Trust returns to help us make a trade decision. For example, suppose you find that Redwood Trust has exhibited high autocorrelation historically, and you observe that the preferred stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Redwood Trust regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Redwood Trust preferred stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Redwood Trust preferred stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Redwood Trust preferred stock over time.
Current vs Lagged Prices |
| Timeline |
Redwood Trust Lagged Returns
When evaluating Redwood Trust's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Redwood Trust preferred stock have on its future price. Redwood Trust autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Redwood Trust autocorrelation shows the relationship between Redwood Trust preferred stock current value and its past values and can show if there is a momentum factor associated with investing in Redwood Trust.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Other Information on Investing in Redwood Preferred Stock
Redwood Trust financial ratios help investors to determine whether Redwood Preferred Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Redwood with respect to the benefits of owning Redwood Trust security.