ABR vs. RWT
ABR (Arbor Realty Trust, Inc.) and RWT (Redwood Trust, Inc.) are both stocks. Both operate in the REIT - Mortgage industry within the Real Estate sector. Over the past 10 years, ABR returned 7.94%/yr vs -1.16%/yr for RWT. At a 0.43 correlation, their price movements are largely independent.
Performance
ABR vs. RWT - Performance Comparison
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Returns By Period
In the year-to-date period, ABR achieves a -28.48% return, which is significantly lower than RWT's -3.53% return. Over the past 10 years, ABR has outperformed RWT with an annualized return of 7.94%, while RWT has yielded a comparatively lower -1.16% annualized return.
ABR
- 1D
- 1.96%
- 1M
- -7.37%
- YTD
- -28.48%
- 6M
- -30.37%
- 1Y
- -42.45%
- 3Y*
- -18.47%
- 5Y*
- -12.08%
- 10Y*
- 7.94%
RWT
- 1D
- 0.58%
- 1M
- -2.46%
- YTD
- -3.53%
- 6M
- -4.87%
- 1Y
- 4.63%
- 3Y*
- 3.38%
- 5Y*
- -6.67%
- 10Y*
- -1.16%
ABR vs. RWT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ABR Arbor Realty Trust, Inc. | -28.48% | -36.65% | 3.16% | 29.73% | -20.73% | 39.42% | 10.04% | 55.19% | 30.04% | 26.60% |
RWT Redwood Trust, Inc. | -3.53% | -4.08% | -2.60% | 21.61% | -42.26% | 60.13% | -42.70% | 18.16% | 9.40% | 4.49% |
Correlation
The correlation between ABR and RWT is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.51 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.55 |
Correlation (All Time) Calculated using the full available price history since Apr 7, 2004 | 0.43 |
The correlation between ABR and RWT shifts across timeframes, from 0.43 (all time) to 0.59 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
ABR:
$0.57
RWT:
-$0.48
ABR:
1.17
RWT:
2.48
ABR:
$940.70M
RWT:
$269.15M
ABR:
$829.57M
RWT:
$1.06B
ABR:
$878.83M
RWT:
$1.06B
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Return for Risk
ABR vs. RWT — Risk / Return Rank
ABR
RWT
ABR vs. RWT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Arbor Realty Trust, Inc. (ABR) and Redwood Trust, Inc. (RWT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ABR | RWT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.16 | ||
| Sortino ratioReturn per unit of downside risk | -1.91 | ||
| Omega ratioGain probability vs. loss probability | 0.82 | 1.06 | -0.25 |
| Calmar ratioReturn relative to maximum drawdown | -0.78 | 0.22 | -1.00 |
| Martin ratioReturn relative to average drawdown | -1.46 | 0.44 | -1.90 |
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Drawdowns
ABR vs. RWT - Drawdown Comparison
The maximum ABR drawdown since its inception was -97.76%, which is greater than RWT's maximum drawdown of -88.91%. Use the drawdown chart below to compare losses from any high point for ABR and RWT.
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Drawdown Indicators
| ABR | RWT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -97.76% | -88.91% | -8.85% |
Max Drawdown (1Y)Largest decline over 1 year | -54.82% | -21.22% | -33.60% |
Max Drawdown (3Y)Largest decline over 3 years | -59.55% | -33.79% | -25.76% |
Max Drawdown (5Y)Largest decline over 5 years | -59.55% | -55.83% | -3.72% |
Max Drawdown (10Y)Largest decline over 10 years | -72.76% | -85.40% | +12.64% |
Current DrawdownCurrent decline from peak | -58.76% | -59.40% | +0.64% |
Average DrawdownAverage peak-to-trough decline | -41.88% | -45.59% | +3.71% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 29.02% | 10.58% | +18.44% |
Volatility
ABR vs. RWT - Volatility Comparison
Arbor Realty Trust, Inc. (ABR) has a higher volatility of 11.50% compared to Redwood Trust, Inc. (RWT) at 7.87%. This indicates that ABR's price experiences larger fluctuations and is considered to be riskier than RWT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ABR | RWT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.50% | 7.87% | +3.63% |
Volatility (6M)Calculated over the trailing 6-month period | 33.80% | 29.25% | +4.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 41.31% | 36.13% | +5.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 37.13% | 35.10% | +2.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 40.46% | 49.05% | -8.59% |
Dividends
ABR vs. RWT - Dividend Comparison
ABR's dividend yield for the trailing twelve months is around 20.58%, more than RWT's 13.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ABR Arbor Realty Trust, Inc. | 20.58% | 17.14% | 12.42% | 11.07% | 11.68% | 7.53% | 8.67% | 7.94% | 11.22% | 8.33% | 8.31% | 8.11% |
RWT Redwood Trust, Inc. | 13.95% | 13.02% | 10.26% | 9.58% | 13.61% | 5.91% | 8.26% | 7.26% | 7.83% | 7.56% | 7.36% | 8.48% |
Financials
ABR vs. RWT - Financials Comparison
This section allows you to compare key financial metrics between Arbor Realty Trust, Inc. and Redwood Trust, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
Frequently Asked Questions
ABR and RWT have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ABR has higher volatility (11.50%) compared to RWT (7.87%). In terms of maximum drawdown, ABR dropped -97.76% vs RWT's -88.91%.
RWT currently has the higher Sharpe Ratio (0.13 vs -1.03), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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