RWT vs. LYG
RWT (Redwood Trust, Inc.) and LYG (Lloyds Banking Group plc) are both stocks. RWT operates in REIT - Mortgage (Real Estate), while LYG operates in Banks - Regional (Financial Services). Over the past 10 years, RWT returned -0.98%/yr vs 7.45%/yr for LYG. At a 0.35 correlation, their price movements are largely independent.
Performance
RWT vs. LYG - Performance Comparison
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Returns By Period
In the year-to-date period, RWT achieves a 0.40% return, which is significantly lower than LYG's 4.96% return. Over the past 10 years, RWT has underperformed LYG with an annualized return of -0.98%, while LYG has yielded a comparatively higher 7.45% annualized return.
RWT
- 1D
- 0.94%
- 1M
- -6.28%
- YTD
- 0.40%
- 6M
- 3.47%
- 1Y
- 13.13%
- 3Y*
- 5.64%
- 5Y*
- -4.13%
- 10Y*
- -0.98%
LYG
- 1D
- 0.18%
- 1M
- 1.31%
- YTD
- 4.96%
- 6M
- 7.60%
- 1Y
- 32.27%
- 3Y*
- 40.62%
- 5Y*
- 20.06%
- 10Y*
- 7.45%
RWT vs. LYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
RWT Redwood Trust, Inc. | 0.40% | -4.08% | -2.60% | 21.61% | -42.26% | 60.13% | -42.70% | 18.16% | 9.40% | 4.49% |
LYG Lloyds Banking Group plc | 4.96% | 103.71% | 20.30% | 14.68% | -9.47% | 33.81% | -40.79% | 36.81% | -28.35% | 30.79% |
Correlation
The correlation between RWT and LYG is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.38 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.36 |
Correlation (All Time) Calculated using the full available price history since Nov 28, 2001 | 0.35 |
Fundamentals
RWT:
-$0.48
LYG:
$0.45
RWT:
2.58
LYG:
0.94
RWT:
$269.15M
LYG:
$65.49B
RWT:
$1.06B
LYG:
$65.49B
RWT:
$1.06B
LYG:
$7.17B
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Return for Risk
RWT vs. LYG — Risk / Return Rank
RWT
LYG
RWT vs. LYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Redwood Trust, Inc. (RWT) and Lloyds Banking Group plc (LYG). 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.
| RWT | LYG | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 0.37 | 1.16 | -0.80 |
Sortino ratioReturn per unit of downside risk | 0.85 | 1.72 | -0.87 |
Omega ratioGain probability vs. loss probability | 1.11 | 1.21 | -0.10 |
Calmar ratioReturn relative to maximum drawdown | 0.61 | 1.50 | -0.90 |
Martin ratioReturn relative to average drawdown | 1.25 | 4.26 | -3.01 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| RWT | LYG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.37 | 1.16 | -0.80 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.12 | 0.63 | -0.75 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.02 | 0.20 | -0.23 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.12 | -0.03 | +0.14 |
Drawdowns
RWT vs. LYG - Drawdown Comparison
The maximum RWT drawdown since its inception was -88.91%, smaller than the maximum LYG drawdown of -94.84%. Use the drawdown chart below to compare losses from any high point for RWT and LYG.
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Drawdown Indicators
| RWT | LYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -88.91% | -94.84% | +5.93% |
Max Drawdown (1Y)Largest decline over 1 year | -19.91% | -22.72% | +2.81% |
Max Drawdown (3Y)Largest decline over 3 years | -33.79% | -22.72% | -11.07% |
Max Drawdown (5Y)Largest decline over 5 years | -55.83% | -40.19% | -15.64% |
Max Drawdown (10Y)Largest decline over 10 years | -85.40% | -68.72% | -16.68% |
Current DrawdownCurrent decline from peak | -57.75% | -56.62% | -1.13% |
Average DrawdownAverage peak-to-trough decline | -45.58% | -63.42% | +17.84% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 9.70% | 8.02% | +1.68% |
Volatility
RWT vs. LYG - Volatility Comparison
The current volatility for Redwood Trust, Inc. (RWT) is 6.19%, while Lloyds Banking Group plc (LYG) has a volatility of 10.19%. This indicates that RWT experiences smaller price fluctuations and is considered to be less risky than LYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RWT | LYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.19% | 10.19% | -4.00% |
Volatility (6M)Calculated over the trailing 6-month period | 28.66% | 21.64% | +7.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 35.79% | 27.88% | +7.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 35.05% | 32.05% | +3.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 49.03% | 36.51% | +12.52% |
Dividends
RWT vs. LYG - Dividend Comparison
RWT's dividend yield for the trailing twelve months is around 13.41%, more than LYG's 3.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LYG Lloyds Banking Group plc | 3.67% | 3.19% | 5.44% | 5.23% | 4.92% | 2.70% | 0.00% | 5.04% | 6.63% | 6.81% | 5.17% | 2.11% |
RWT Redwood Trust, Inc. | 13.41% | 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. LYG - Financials Comparison
This section allows you to compare key financial metrics between Redwood Trust, Inc. and Lloyds Banking Group plc. 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 LYG have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LYG has higher volatility (10.19%) compared to RWT (6.19%). In terms of maximum drawdown, RWT dropped -88.91% vs LYG's -94.84%.
LYG currently has the higher Sharpe Ratio (1.16 vs 0.37), 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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