RWT vs. KREF
RWT (Redwood Trust, Inc.) and KREF (KKR Real Estate Finance Trust Inc.) are both stocks. Both operate in the REIT - Mortgage industry within the Real Estate sector. Over the past 5 years, RWT returned -6.67%/yr vs -11.22%/yr for KREF. A 0.58 correlation means they provide meaningful diversification when combined.
Performance
RWT vs. KREF - Performance Comparison
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Returns By Period
In the year-to-date period, RWT achieves a -3.53% return, which is significantly higher than KREF's -10.55% return.
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%
KREF
- 1D
- 3.82%
- 1M
- 10.66%
- YTD
- -10.55%
- 6M
- -10.44%
- 1Y
- -13.39%
- 3Y*
- -6.88%
- 5Y*
- -11.22%
- 10Y*
- —
RWT vs. KREF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
RWT Redwood Trust, Inc. | -3.53% | -4.08% | -2.60% | 21.61% | -42.26% | 60.13% | -42.70% | 18.16% | 9.40% | -6.30% |
KREF KKR Real Estate Finance Trust Inc. | -10.55% | -9.25% | -15.80% | 9.15% | -25.89% | 27.86% | -2.82% | 16.15% | 4.26% | -0.09% |
Correlation
The correlation between RWT and KREF 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 | 0.60 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since May 5, 2017 | 0.58 |
The correlation between RWT and KREF shifts across timeframes, from 0.51 (1 year) to 0.61 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
RWT:
-$0.48
KREF:
-$1.58
RWT:
2.48
KREF:
1.27
RWT:
$269.15M
KREF:
$366.11M
RWT:
$1.06B
KREF:
$298.61M
RWT:
$1.06B
KREF:
$197.55M
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Return for Risk
RWT vs. KREF — Risk / Return Rank
RWT
KREF
RWT vs. KREF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Redwood Trust, Inc. (RWT) and KKR Real Estate Finance Trust Inc. (KREF). 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.
| RWT | KREF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.58 | ||
| Sortino ratioReturn per unit of downside risk | +0.92 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 0.95 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 0.22 | -0.39 | +0.61 |
| Martin ratioReturn relative to average drawdown | 0.44 | -0.75 | +1.19 |
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Drawdowns
RWT vs. KREF - Drawdown Comparison
The maximum RWT drawdown since its inception was -88.91%, which is greater than KREF's maximum drawdown of -57.33%. Use the drawdown chart below to compare losses from any high point for RWT and KREF.
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Drawdown Indicators
| RWT | KREF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -88.91% | -57.33% | -31.58% |
Max Drawdown (1Y)Largest decline over 1 year | -21.22% | -34.53% | +13.31% |
Max Drawdown (3Y)Largest decline over 3 years | -33.79% | -44.87% | +11.08% |
Max Drawdown (5Y)Largest decline over 5 years | -55.83% | -57.33% | +1.50% |
Max Drawdown (10Y)Largest decline over 10 years | -85.40% | — | — |
Current DrawdownCurrent decline from peak | -59.40% | -48.56% | -10.84% |
Average DrawdownAverage peak-to-trough decline | -45.59% | -19.64% | -25.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.58% | 17.96% | -7.38% |
Volatility
RWT vs. KREF - Volatility Comparison
The current volatility for Redwood Trust, Inc. (RWT) is 7.87%, while KKR Real Estate Finance Trust Inc. (KREF) has a volatility of 9.95%. This indicates that RWT experiences smaller price fluctuations and is considered to be less risky than KREF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RWT | KREF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.87% | 9.95% | -2.08% |
Volatility (6M)Calculated over the trailing 6-month period | 29.25% | 25.44% | +3.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 36.13% | 29.99% | +6.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 35.10% | 30.06% | +5.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 49.05% | 30.75% | +18.30% |
Dividends
RWT vs. KREF - Dividend Comparison
RWT's dividend yield for the trailing twelve months is around 13.95%, less than KREF's 14.16% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KREF KKR Real Estate Finance Trust Inc. | 14.16% | 12.17% | 9.90% | 13.00% | 12.32% | 9.53% | 9.60% | 8.42% | 8.83% | 4.95% | 0.00% | 0.00% |
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
RWT vs. KREF - Financials Comparison
This section allows you to compare key financial metrics between Redwood Trust, Inc. and KKR Real Estate Finance 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
RWT and KREF 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.
KREF has higher volatility (9.95%) compared to RWT (7.87%). In terms of maximum drawdown, RWT dropped -88.91% vs KREF's -57.33%.
RWT currently has the higher Sharpe Ratio (0.13 vs -0.45), 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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