RWT vs. MRCC

Last updated Jun 4, 2026

RWT (Redwood Trust, Inc.) and MRCC (Monroe Capital Corporation) are both stocks. RWT operates in REIT - Mortgage (Real Estate), while MRCC operates in Mortgage Finance (Financial Services). At a 0.22 correlation, their price movements are largely independent.

Performance

RWT vs. MRCC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Redwood Trust, Inc. (RWT) and Monroe Capital Corporation (MRCC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

RWT

• 1D: -2.79%
• 1M: -6.79%
• YTD: -2.41%
• 6M: -1.56%
• 1Y: 7.19%
• 3Y*: 4.65%
• 5Y*: -5.10%
• 10Y*: -1.26%

MRCC

• 1D: —
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

RWT vs. MRCC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RWT Redwood Trust, Inc.	-2.41%	-4.08%	-2.60%	21.61%	-42.26%	60.13%	-42.70%	18.16%	9.40%	4.49%
MRCC Monroe Capital Corporation	-8.19%	-14.59%	36.74%	-5.68%	-15.37%	53.23%	-15.17%	27.79%	-22.10%	-1.64%

Correlation

The correlation between RWT and MRCC is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
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 Oct 26, 2012	0.22

Fundamentals

EPS RWT : -$0.48 MRCC : $0.53
PS Ratio RWT : 2.51 MRCC : 3.55
Total Revenue (TTM) RWT : $269.15M MRCC : $31.01M
Gross Profit (TTM) RWT : $1.06B MRCC : $1.44M
EBITDA (TTM) RWT : $1.06B MRCC : -$2.33M

Return for Risk

RWT vs. MRCC — Risk / Return Rank

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

RWT

RWT Risk / Return Rank: 47
RWT Sharpe Ratio Rank: 48
RWT Sortino Ratio Rank: 45
RWT Omega Ratio Rank: 44
RWT Calmar Ratio Rank: 49
RWT Martin Ratio Rank: 49

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.

RWT vs. MRCC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Redwood Trust, Inc. (RWT) and Monroe Capital Corporation (MRCC). 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	MRCC	Difference
Sharpe ratio Return per unit of total volatility	0.20	—	—
Sortino ratio Return per unit of downside risk	0.60	—	—
Omega ratio Gain probability vs. loss probability	1.08	—	—
Calmar ratio Return relative to maximum drawdown	0.36	—	—
Martin ratio Return relative to average drawdown	0.74	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	RWT	MRCC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.20	—	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.15	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.03	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.11	—	—

Drawdowns

Drawdown Indicators

	RWT	MRCC	Difference
Max Drawdown Largest peak-to-trough decline	-88.91%	—	—
Max Drawdown (1Y) Largest decline over 1 year	-19.91%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-33.79%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-55.83%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-85.40%	—	—
Current Drawdown Current decline from peak	-58.93%	—	—
Average Drawdown Average peak-to-trough decline	-45.58%	—	—
Ulcer Index Depth and duration of drawdowns from previous peaks	9.78%	—	—

Volatility

Volatility by Period

	RWT	MRCC	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.40%	—	—
Volatility (6M) Calculated over the trailing 6-month period	28.77%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	35.89%	—	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.07%	—	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	49.03%	—	—

Dividends

RWT vs. MRCC - Dividend Comparison

RWT's dividend yield for the trailing twelve months is around 13.79%, less than MRCC's 26.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MRCC Monroe Capital Corporation	26.97%	14.60%	11.76%	14.15%	11.71%	8.91%	13.70%	12.89%	14.58%	10.18%	9.10%	10.70%
RWT Redwood Trust, Inc.	13.79%	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 RWT and MRCC in my portfolio?

RWT and MRCC have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.