RWT vs. LFT
RWT (Redwood Trust, Inc.) and LFT (Lument Finance Trust, Inc.) are both stocks. Both operate in the REIT - Mortgage industry within the Real Estate sector. Over the past 10 years, RWT returned -1.16%/yr vs -3.37%/yr for LFT. At a 0.28 correlation, their price movements are largely independent.
Performance
RWT vs. LFT - 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 LFT's -26.79% return. Over the past 10 years, RWT has outperformed LFT with an annualized return of -1.16%, while LFT has yielded a comparatively lower -3.37% annualized 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%
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 vs. LFT - 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% | 4.49% |
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% |
Correlation
The correlation between RWT and LFT 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 RWT and LFT shifts across timeframes, from 0.27 (3 years) to 0.38 (1 year), reflecting how their relationship changes across market environments.
Fundamentals
RWT:
-$0.48
LFT:
-$0.06
RWT:
2.48
LFT:
0.92
RWT:
$269.15M
LFT:
$56.81M
RWT:
$1.06B
LFT:
$63.50M
RWT:
$1.06B
LFT:
$37.56M
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Return for Risk
RWT vs. LFT — Risk / Return Rank
RWT
LFT
RWT vs. LFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Redwood Trust, Inc. (RWT) and Lument Finance Trust, Inc. (LFT). 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 | LFT | 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 | 1.06 | 0.78 | +0.28 |
| Calmar ratioReturn relative to maximum drawdown | 0.22 | -1.00 | +1.22 |
| Martin ratioReturn relative to average drawdown | 0.44 | -1.57 | +2.01 |
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Drawdowns
RWT vs. LFT - Drawdown Comparison
The maximum RWT drawdown since its inception was -88.91%, which is greater than LFT's maximum drawdown of -81.57%. Use the drawdown chart below to compare losses from any high point for RWT and LFT.
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Drawdown Indicators
| RWT | LFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -88.91% | -81.57% | -7.34% |
Max Drawdown (1Y)Largest decline over 1 year | -21.22% | -55.07% | +33.85% |
Max Drawdown (3Y)Largest decline over 3 years | -33.79% | -59.51% | +25.72% |
Max Drawdown (5Y)Largest decline over 5 years | -55.83% | -59.51% | +3.68% |
Max Drawdown (10Y)Largest decline over 10 years | -85.40% | -77.00% | -8.40% |
Current DrawdownCurrent decline from peak | -59.40% | -61.22% | +1.82% |
Average DrawdownAverage peak-to-trough decline | -45.59% | -33.00% | -12.59% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.58% | 34.92% | -24.34% |
Volatility
RWT vs. LFT - Volatility Comparison
The current volatility for Redwood Trust, Inc. (RWT) is 7.87%, while Lument Finance Trust, Inc. (LFT) has a volatility of 13.71%. This indicates that RWT experiences smaller price fluctuations and is considered to be less risky than LFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RWT | LFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.87% | 13.71% | -5.84% |
Volatility (6M)Calculated over the trailing 6-month period | 29.25% | 33.38% | -4.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 36.13% | 47.45% | -11.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 35.10% | 35.31% | -0.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 49.05% | 41.48% | +7.57% |
Dividends
RWT vs. LFT - Dividend Comparison
RWT's dividend yield for the trailing twelve months is around 13.95%, less than LFT's 18.00% 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
RWT vs. LFT - Financials Comparison
This section allows you to compare key financial metrics between Redwood Trust, Inc. and Lument 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 LFT 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, RWT dropped -88.91% vs LFT's -81.57%.
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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