ORC vs. RWT

Last updated Jun 20, 2026

ORC (Orchid Island Capital, 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, ORC returned -3.30%/yr vs -1.16%/yr for RWT. At a 0.48 correlation, their price movements are largely independent.

Performance

ORC vs. RWT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Orchid Island Capital, Inc. (ORC) 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, ORC achieves a 0.49% return, which is significantly higher than RWT's -3.53% return. Over the past 10 years, ORC has underperformed RWT with an annualized return of -3.30%, while RWT has yielded a comparatively higher -1.16% annualized return.

ORC

• 1D: 1.36%
• 1M: 0.26%
• YTD: 0.49%
• 6M: 0.23%
• 1Y: 15.51%
• 3Y*: 4.64%
• 5Y*: -8.40%
• 10Y*: -3.30%

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%

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

ORC vs. RWT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ORC Orchid Island Capital, Inc.	0.49%	12.66%	9.87%	-3.10%	-41.63%	0.07%	4.75%	6.68%	-20.38%	1.07%
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 ORC and RWT is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Feb 14, 2013	0.48

The correlation between ORC and RWT shifts across timeframes, from 0.48 (all time) to 0.63 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS ORC : $0.85 RWT : -$0.48
PS Ratio ORC : 5.61 RWT : 2.48
Total Revenue (TTM) ORC : $181.13M RWT : $269.15M
Gross Profit (TTM) ORC : $87.42M RWT : $1.06B
EBITDA (TTM) ORC : $197.11M RWT : $1.06B

Return for Risk

ORC vs. RWT — Risk / Return Rank

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

ORC

ORC Risk / Return Rank: 61
ORC Sharpe Ratio Rank: 66
ORC Sortino Ratio Rank: 58
ORC Omega Ratio Rank: 57
ORC Calmar Ratio Rank: 62
ORC Martin Ratio Rank: 63

RWT

RWT Risk / Return Rank: 45
RWT Sharpe Ratio Rank: 47
RWT Sortino Ratio Rank: 43
RWT Omega Ratio Rank: 42
RWT Calmar Ratio Rank: 47
RWT Martin Ratio Rank: 47

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.

ORC vs. RWT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Orchid Island Capital, Inc. (ORC) 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.

	ORC	RWT	Difference
Sharpe ratio: Return per unit of total volatility	0.73	0.13	+0.60
Sortino ratio: Return per unit of downside risk	1.11	0.48	+0.63
Omega ratio: Gain probability vs. loss probability	1.14	1.06	+0.08
Calmar ratio: Return relative to maximum drawdown	0.94	0.22	+0.72
Martin ratio: Return relative to average drawdown	2.14	0.44	+1.70

ORC vs. RWT - Sharpe Ratio Comparison

The current ORC Sharpe Ratio is 0.73, which is higher than the RWT Sharpe Ratio of 0.13. The chart below compares the historical Sharpe Ratios of ORC 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.

Drawdowns

ORC vs. RWT - Drawdown Comparison

The maximum ORC drawdown since its inception was -75.77%, smaller than the maximum RWT drawdown of -88.91%. Use the drawdown chart below to compare losses from any high point for ORC and RWT.

Drawdown Indicators

	ORC	RWT	Difference
Max Drawdown Largest peak-to-trough decline	-75.77%	-88.91%	+13.14%
Max Drawdown (1Y) Largest decline over 1 year	-16.58%	-21.22%	+4.64%
Max Drawdown (3Y) Largest decline over 3 years	-43.06%	-33.79%	-9.27%
Max Drawdown (5Y) Largest decline over 5 years	-65.50%	-55.83%	-9.67%
Max Drawdown (10Y) Largest decline over 10 years	-75.77%	-85.40%	+9.63%
Current Drawdown Current decline from peak	-45.82%	-59.40%	+13.58%
Average Drawdown Average peak-to-trough decline	-28.85%	-45.59%	+16.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.28%	10.58%	-3.30%

Volatility

ORC vs. RWT - Volatility Comparison

The current volatility for Orchid Island Capital, Inc. (ORC) is 6.40%, while Redwood Trust, Inc. (RWT) has a volatility of 7.87%. This indicates that ORC experiences smaller price fluctuations and is considered to be less risky than RWT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ORC	RWT	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.40%	7.87%	-1.47%
Volatility (6M) Calculated over the trailing 6-month period	17.76%	29.25%	-11.49%
Volatility (1Y) Calculated over the trailing 1-year period	21.41%	36.13%	-14.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.78%	35.10%	-5.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.71%	49.05%	-11.34%

Dividends

ORC vs. RWT - Dividend Comparison

ORC's dividend yield for the trailing twelve months is around 20.90%, more than RWT's 13.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ORC Orchid Island Capital, Inc.	20.90%	20.00%	18.51%	21.35%	29.67%	17.33%	15.13%	16.41%	16.74%	18.10%	15.51%	19.34%
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

Frequently Asked Questions

Can I hold both ORC and RWT in my portfolio?

ORC and RWT have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ORC or RWT?

RWT has higher volatility (7.87%) compared to ORC (6.40%). In terms of maximum drawdown, ORC dropped -75.77% vs RWT's -88.91%.

Which has better risk-adjusted returns?

ORC currently has the higher Sharpe Ratio (0.73 vs 0.13), 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.