IIPR vs. RWT

Last updated Jun 4, 2026

IIPR (Innovative Industrial Properties, Inc.) and RWT (Redwood Trust, Inc.) are both stocks. Both are in the Real Estate sector — IIPR in REIT - Industrial, RWT in REIT - Mortgage. Over the past 5 years, IIPR returned -13.55%/yr vs -5.10%/yr for RWT. At a 0.35 correlation, their price movements are largely independent.

Performance

IIPR vs. RWT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovative Industrial Properties, Inc. (IIPR) and Redwood Trust, Inc. (RWT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IIPR achieves a 25.63% return, which is significantly higher than RWT's -2.41% return.

IIPR

• 1D: -1.17%
• 1M: 8.26%
• YTD: 25.63%
• 6M: 20.32%
• 1Y: 18.90%
• 3Y*: 4.66%
• 5Y*: -13.55%
• 10Y*: —

RWT

• 1D: -2.79%
• 1M: -6.79%
• YTD: -2.41%
• 6M: -1.56%
• 1Y: 7.19%
• 3Y*: 4.65%
• 5Y*: -5.10%
• 10Y*: -1.26%

*Multi-year figures are annualized to reflect compound growth (CAGR)

IIPR vs. RWT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IIPR Innovative Industrial Properties, Inc.	25.63%	-18.40%	-28.55%	8.78%	-59.02%	47.49%	151.33%	72.52%	43.88%	82.30%
RWT Redwood Trust, Inc.	-2.41%	-4.08%	-2.60%	21.61%	-42.26%	60.13%	-42.70%	18.16%	9.40%	4.49%

Correlation

The correlation between IIPR and RWT is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (All Time) Calculated using the full available price history since Dec 2, 2016	0.35

The correlation between IIPR and RWT shifts across timeframes, from 0.35 (all time) to 0.48 (3 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS IIPR : $4.14 RWT : -$0.48
PS Ratio IIPR : 6.17 RWT : 2.51
Total Revenue (TTM) IIPR : $263.23M RWT : $269.15M
Gross Profit (TTM) IIPR : $195.78M RWT : $1.06B
EBITDA (TTM) IIPR : $210.04M RWT : $1.06B

Return for Risk

IIPR vs. RWT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IIPR

IIPR Risk / Return Rank: 56
IIPR Sharpe Ratio Rank: 57
IIPR Sortino Ratio Rank: 53
IIPR Omega Ratio Rank: 52
IIPR Calmar Ratio Rank: 59
IIPR Martin Ratio Rank: 60

RWT

RWT Risk / Return Rank: 47
RWT Sharpe Ratio Rank: 48
RWT Sortino Ratio Rank: 45
RWT Omega Ratio Rank: 44
RWT Calmar Ratio Rank: 49
RWT Martin Ratio Rank: 49

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IIPR vs. RWT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovative Industrial Properties, Inc. (IIPR) 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.

	IIPR	RWT	Difference
Sharpe ratio: Return per unit of total volatility	0.46	0.20	+0.26
Sortino ratio: Return per unit of downside risk	1.02	0.60	+0.42
Omega ratio: Gain probability vs. loss probability	1.12	1.08	+0.05
Calmar ratio: Return relative to maximum drawdown	0.89	0.36	+0.53
Martin ratio: Return relative to average drawdown	2.17	0.74	+1.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IIPR vs. RWT - Sharpe Ratio Comparison

The current IIPR Sharpe Ratio is 0.46, which is higher than the RWT Sharpe Ratio of 0.20. The chart below compares the historical Sharpe Ratios of IIPR and RWT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IIPR	RWT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.46	0.20	+0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.33	-0.15	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	-0.03	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.11	+0.28

Drawdowns

IIPR vs. RWT - Drawdown Comparison

The maximum IIPR drawdown since its inception was -78.42%, smaller than the maximum RWT drawdown of -88.91%. Use the drawdown chart below to compare losses from any high point for IIPR and RWT.

Drawdown Indicators

	IIPR	RWT	Difference
Max Drawdown Largest peak-to-trough decline	-78.42%	-88.91%	+10.49%
Max Drawdown (1Y) Largest decline over 1 year	-21.29%	-19.91%	-1.38%
Max Drawdown (3Y) Largest decline over 3 years	-62.92%	-33.79%	-29.13%
Max Drawdown (5Y) Largest decline over 5 years	-78.42%	-55.83%	-22.59%
Max Drawdown (10Y) Largest decline over 10 years	—	-85.40%	—
Current Drawdown Current decline from peak	-69.83%	-58.93%	-10.90%
Average Drawdown Average peak-to-trough decline	-37.00%	-45.58%	+8.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.72%	9.78%	-1.06%

Volatility

IIPR vs. RWT - Volatility Comparison

Innovative Industrial Properties, Inc. (IIPR) has a higher volatility of 15.24% compared to Redwood Trust, Inc. (RWT) at 6.40%. This indicates that IIPR'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.

Volatility by Period

	IIPR	RWT	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.24%	6.40%	+8.84%
Volatility (6M) Calculated over the trailing 6-month period	29.68%	28.77%	+0.91%
Volatility (1Y) Calculated over the trailing 1-year period	40.97%	35.89%	+5.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	41.62%	35.07%	+6.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	48.43%	49.03%	-0.60%

Dividends

IIPR vs. RWT - Dividend Comparison

IIPR's dividend yield for the trailing twelve months is around 13.27%, less than RWT's 13.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IIPR Innovative Industrial Properties, Inc.	13.27%	16.05%	11.28%	7.16%	7.01%	2.18%	2.44%	3.73%	1.87%	1.70%	0.00%	0.00%
RWT Redwood Trust, Inc.	13.79%	13.02%	10.26%	9.58%	13.61%	5.91%	8.26%	7.26%	7.83%	7.56%	7.36%	8.48%

Financials

Frequently Asked Questions

Can I hold both IIPR and RWT in my portfolio?

IIPR and RWT have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IIPR or RWT?

IIPR has higher volatility (15.24%) compared to RWT (6.40%). In terms of maximum drawdown, IIPR dropped -78.42% vs RWT's -88.91%.

Which has better risk-adjusted returns?

IIPR currently has the higher Sharpe Ratio (0.46 vs 0.20), 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.