STWD vs. TWO
STWD (Starwood Property Trust, Inc.) and TWO (Two Harbors Investment Corp.) are both stocks. Both operate in the REIT - Mortgage industry within the Real Estate sector. Over the past 10 years, STWD returned 7.57%/yr vs -2.88%/yr for TWO. A 0.60 correlation means they provide meaningful diversification when combined.
Performance
STWD vs. TWO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, STWD achieves a -4.64% return, which is significantly lower than TWO's 24.99% return. Over the past 10 years, STWD has outperformed TWO with an annualized return of 7.57%, while TWO has yielded a comparatively lower -2.88% annualized return.
STWD
- 1D
- 0.24%
- 1M
- -2.57%
- YTD
- -4.64%
- 6M
- -4.40%
- 1Y
- -7.73%
- 3Y*
- 4.98%
- 5Y*
- 1.17%
- 10Y*
- 7.57%
TWO
- 1D
- 0.24%
- 1M
- -1.52%
- YTD
- 24.99%
- 6M
- 15.02%
- 1Y
- 31.10%
- 3Y*
- 9.76%
- 5Y*
- -4.72%
- 10Y*
- -2.88%
STWD vs. TWO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
STWD Starwood Property Trust, Inc. | -4.64% | 4.91% | -0.56% | 26.70% | -17.33% | 35.88% | -12.01% | 36.80% | 1.11% | 6.08% |
TWO Two Harbors Investment Corp. | 24.99% | 2.52% | -2.73% | 2.31% | -23.25% | 0.03% | -52.19% | 28.73% | -10.33% | 26.53% |
Correlation
The correlation between STWD and TWO is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.48 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.67 |
Correlation (All Time) Calculated using the full available price history since Oct 30, 2009 | 0.60 |
The correlation between STWD and TWO shifts across timeframes, from 0.48 (1 year) to 0.69 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
STWD:
$1.39
TWO:
-$4.56
STWD:
2.13
TWO:
1.76
STWD:
$1.98B
TWO:
$546.33M
STWD:
$1.19B
TWO:
$524.61M
STWD:
$1.83B
TWO:
-$7.58M
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
STWD vs. TWO — Risk / Return Rank
STWD
TWO
STWD vs. TWO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Starwood Property Trust, Inc. (STWD) and Two Harbors Investment Corp. (TWO). 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.
| STWD | TWO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.23 | ||
| Sortino ratioReturn per unit of downside risk | -1.94 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 1.20 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | -0.53 | 0.85 | -1.38 |
| Martin ratioReturn relative to average drawdown | -0.87 | 2.41 | -3.29 |
Loading charts...
Drawdowns
STWD vs. TWO - Drawdown Comparison
The maximum STWD drawdown since its inception was -66.34%, smaller than the maximum TWO drawdown of -84.71%. Use the drawdown chart below to compare losses from any high point for STWD and TWO.
Loading charts...
Drawdown Indicators
| STWD | TWO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.34% | -84.71% | +18.37% |
Max Drawdown (1Y)Largest decline over 1 year | -14.53% | -36.81% | +22.28% |
Max Drawdown (3Y)Largest decline over 3 years | -16.66% | -36.81% | +20.15% |
Max Drawdown (5Y)Largest decline over 5 years | -29.65% | -57.23% | +27.58% |
Max Drawdown (10Y)Largest decline over 10 years | -66.34% | -84.71% | +18.37% |
Current DrawdownCurrent decline from peak | -13.85% | -56.77% | +42.92% |
Average DrawdownAverage peak-to-trough decline | -7.58% | -28.63% | +21.05% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 8.87% | 12.92% | -4.05% |
Volatility
STWD vs. TWO - Volatility Comparison
Starwood Property Trust, Inc. (STWD) has a higher volatility of 5.19% compared to Two Harbors Investment Corp. (TWO) at 1.67%. This indicates that STWD's price experiences larger fluctuations and is considered to be riskier than TWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| STWD | TWO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.19% | 1.67% | +3.52% |
Volatility (6M)Calculated over the trailing 6-month period | 12.35% | 36.95% | -24.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.81% | 40.70% | -23.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 24.26% | 33.19% | -8.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 30.13% | 47.99% | -17.86% |
Dividends
STWD vs. TWO - Dividend Comparison
STWD's dividend yield for the trailing twelve months is around 11.50%, which matches TWO's 11.44% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
STWD Starwood Property Trust, Inc. | 11.50% | 10.66% | 10.13% | 9.13% | 10.47% | 7.90% | 9.95% | 7.72% | 9.74% | 8.99% | 8.75% | 9.34% |
TWO Two Harbors Investment Corp. | 11.44% | 15.52% | 15.22% | 15.08% | 12.94% | 11.79% | 7.85% | 11.42% | 14.64% | 23.31% | 10.67% | 12.84% |
Financials
STWD vs. TWO - Financials Comparison
This section allows you to compare key financial metrics between Starwood Property Trust, Inc. and Two Harbors Investment Corp.. 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
STWD and TWO have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
STWD has higher volatility (5.19%) compared to TWO (1.67%). In terms of maximum drawdown, STWD dropped -66.34% vs TWO's -84.71%.
TWO currently has the higher Sharpe Ratio (0.77 vs -0.46), 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.
Find the right allocation for STWD and TWO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer