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 -2.19%/yr vs 12.99%/yr for LYG. Their 0.35 correlation means their historical movements had little consistent relationship.
Performance
RWT vs. LYG - Performance Comparison
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Returns By Period
In the year-to-date period, RWT achieves a -11.35% return, which is significantly lower than LYG's 19.27% return. Over the past 10 years, RWT has underperformed LYG with an annualized return of -2.19%, while LYG has yielded a comparatively higher 12.99% annualized return.
RWT
- 1D
- -1.93%
- 1M
- 2.01%
- 6M
- -10.55%
- YTD
- -11.35%
- 1Y
- -4.38%
- 3Y*
- -5.25%
- 5Y*
- -7.74%
- 10Y*
- -2.19%
- ALL TIME*
- 4.88%
LYG
- 1D
- -1.28%
- 1M
- 1.82%
- 6M
- 5.88%
- YTD
- 19.27%
- 1Y
- 47.19%
- 3Y*
- 47.39%
- 5Y*
- 25.82%
- 10Y*
- 12.99%
- ALL TIME*
- -0.65%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $101.57M | $99.91M | $119.79M | |
| $11.26M | $20.65M | $12.03M |
RWT vs. LYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
RWT Redwood Trust, Inc. | -11.35% | -4.08% | -2.60% | 21.61% | -42.26% | 60.13% | -42.70% | 18.16% | 9.40% | 4.49% |
LYG Lloyds Banking Group plc | 19.27% | 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 0.35, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.35 |
Correlation (3Y) Balances recent behavior with more history. | 0.35 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.38 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.36 |
Correlation (All Time) Calculated using the full available price history since Nov 27, 2001 | 0.35 |
Fundamentals
RWT:
$572.24M
LYG:
$89.56B
RWT:
$0.10
LYG:
£0.34
RWT:
46.65
LYG:
13.54
RWT:
0.47
LYG:
1.05
RWT:
$921.20M
LYG:
£65.45B
RWT:
$292.96M
LYG:
£65.45B
RWT:
$326.59M
LYG:
£7.45B
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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.
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 | LYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.90 | ||
| Sortino ratioReturn per unit of downside risk | -2.40 | ||
| Omega ratioGain probability vs. loss probability | 1.01 | 1.30 | -0.29 |
| Calmar ratioReturn relative to maximum drawdown | -0.16 | 2.30 | -2.46 |
| Martin ratioReturn relative to average drawdown | -0.34 | 6.18 | -6.53 |
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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 | -28.06% | -22.72% | -5.34% |
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 | -62.70% | -50.71% | -11.99% |
Average DrawdownAverage peak-to-trough decline | -45.65% | -63.35% | +17.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 12.86% | 8.45% | +4.41% |
Volatility
RWT vs. LYG - Volatility Comparison
Redwood Trust, Inc. (RWT) has a higher volatility of 12.42% compared to Lloyds Banking Group plc (LYG) at 10.40%. This indicates that RWT's price experiences larger fluctuations and is considered to be riskier 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 | 12.42% | 10.40% | +2.02% |
Volatility (6M)Calculated over the trailing 6-month period | 30.52% | 24.44% | +6.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 37.08% | 29.33% | +7.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 35.36% | 32.12% | +3.24% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 49.21% | 34.82% | +14.39% |
Dividends
RWT vs. LYG - Dividend Comparison
RWT's dividend yield for the trailing twelve months is around 15.75%, more than LYG's 3.23% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LYG Lloyds Banking Group plc | 3.23% | 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. | 15.75% | 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
RWT vs. LYG - Profitability Comparison
RWT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Redwood Trust, Inc. reported a gross profit of 0.00 and revenue of 12.20M. Therefore, the gross margin over that period was 0.0%.
LYG - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Lloyds Banking Group plc reported a gross profit of 13.84B and revenue of 13.84B. Therefore, the gross margin over that period was 100.0%.
RWT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Redwood Trust, Inc. reported an operating income of 0.00 and revenue of 12.20M, resulting in an operating margin of 0.0%.
LYG - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Lloyds Banking Group plc reported an operating income of 2.27B and revenue of 13.84B, resulting in an operating margin of 16.4%.
RWT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Redwood Trust, Inc. reported a net income of 2.50M and revenue of 12.20M, resulting in a net margin of 20.5%.
LYG - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Lloyds Banking Group plc reported a net income of 1.53B and revenue of 13.84B, resulting in a net margin of 11.1%.
Frequently Asked Questions
RWT and LYG have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
RWT has higher volatility (12.42%) compared to LYG (10.40%). In terms of maximum drawdown, RWT dropped -88.91% vs LYG's -94.84%.
LYG currently has the higher Sharpe Ratio (1.78 vs -0.12), 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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