LFT vs. RWT
LFT (Lument Finance 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, LFT returned -3.37%/yr vs -1.16%/yr for RWT. At a 0.28 correlation, their price movements are largely independent.
Performance
LFT vs. RWT - Performance Comparison
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Returns By Period
In the year-to-date period, LFT achieves a -26.79% return, which is significantly lower than RWT's -3.53% return. Over the past 10 years, LFT has underperformed RWT with an annualized return of -3.37%, while RWT has yielded a comparatively higher -1.16% annualized return.
LFT
- 1D
- -2.91%
- 1M
- -12.28%
- YTD
- -26.79%
- 6M
- -27.77%
- 1Y
- -54.81%
- 3Y*
- -8.68%
- 5Y*
- -15.79%
- 10Y*
- -3.37%
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%
LFT vs. RWT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LFT Lument Finance Trust, Inc. | -26.79% | -39.33% | 29.40% | 38.64% | -45.07% | 28.63% | 15.69% | 23.31% | -22.06% | -9.69% |
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 LFT and RWT is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.28 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.27 |
Correlation (All Time) Calculated using the full available price history since Mar 22, 2013 | 0.28 |
The correlation between LFT and RWT shifts across timeframes, from 0.27 (3 years) to 0.38 (1 year), reflecting how their relationship changes across market environments.
Fundamentals
LFT:
-$0.06
RWT:
-$0.48
LFT:
0.92
RWT:
2.48
LFT:
$56.81M
RWT:
$269.15M
LFT:
$63.50M
RWT:
$1.06B
LFT:
$37.56M
RWT:
$1.06B
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Return for Risk
LFT vs. RWT — Risk / Return Rank
LFT
RWT
LFT vs. RWT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Lument Finance Trust, Inc. (LFT) 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.
| LFT | RWT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.29 | ||
| Sortino ratioReturn per unit of downside risk | -2.42 | ||
| Omega ratioGain probability vs. loss probability | 0.78 | 1.06 | -0.28 |
| Calmar ratioReturn relative to maximum drawdown | -1.00 | 0.22 | -1.22 |
| Martin ratioReturn relative to average drawdown | -1.57 | 0.44 | -2.01 |
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Drawdowns
LFT vs. RWT - Drawdown Comparison
The maximum LFT drawdown since its inception was -81.57%, smaller than the maximum RWT drawdown of -88.91%. Use the drawdown chart below to compare losses from any high point for LFT and RWT.
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Drawdown Indicators
| LFT | RWT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -81.57% | -88.91% | +7.34% |
Max Drawdown (1Y)Largest decline over 1 year | -55.07% | -21.22% | -33.85% |
Max Drawdown (3Y)Largest decline over 3 years | -59.51% | -33.79% | -25.72% |
Max Drawdown (5Y)Largest decline over 5 years | -59.51% | -55.83% | -3.68% |
Max Drawdown (10Y)Largest decline over 10 years | -77.00% | -85.40% | +8.40% |
Current DrawdownCurrent decline from peak | -61.22% | -59.40% | -1.82% |
Average DrawdownAverage peak-to-trough decline | -33.00% | -45.59% | +12.59% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 34.92% | 10.58% | +24.34% |
Volatility
LFT vs. RWT - Volatility Comparison
Lument Finance Trust, Inc. (LFT) has a higher volatility of 13.71% compared to Redwood Trust, Inc. (RWT) at 7.87%. This indicates that LFT'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
| LFT | RWT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 13.71% | 7.87% | +5.84% |
Volatility (6M)Calculated over the trailing 6-month period | 33.38% | 29.25% | +4.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 47.45% | 36.13% | +11.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 35.31% | 35.10% | +0.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 41.48% | 49.05% | -7.57% |
Dividends
LFT vs. RWT - Dividend Comparison
LFT's dividend yield for the trailing twelve months is around 18.00%, more than RWT's 13.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LFT Lument Finance Trust, Inc. | 18.00% | 15.60% | 15.50% | 11.16% | 12.63% | 9.38% | 11.16% | 9.13% | 9.79% | 13.75% | 41.20% | 24.73% |
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
LFT vs. RWT - Financials Comparison
This section allows you to compare key financial metrics between Lument Finance 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
LFT and RWT have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LFT has higher volatility (13.71%) compared to RWT (7.87%). In terms of maximum drawdown, LFT dropped -81.57% vs RWT's -88.91%.
RWT currently has the higher Sharpe Ratio (0.13 vs -1.16), 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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