ACRE vs STWD: Correlation
Measured on weekly returns over the past three years, Ares Commercial Real Estate Corporation (ACRE) and STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc. (STWD) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACRE and STWD?
On 3 years of weekly data the ACRE/STWD correlation comes out at 0.57, moderate. Little has changed lately, as the 1-year reading of 0.66 lands near the 3-year figure. The 5-year figure is 0.68, and annualized covariance runs at 415.3 %².
Within ACRE's tracked universe of 13 assets, STWD comes in at #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with ACRE ahead by 25.4 points (+13.6% versus -11.8%). Note the risk asymmetry: ACRE runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ACRE vs STWD: side by side
| ACRE (Ares Commercial Real Estate Corporation) | STWD (STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc.) | |
|---|---|---|
| 1-year return | +13.6% | -11.8% |
| 5-year return | -43.9% | +0.5% |
| Volatility (ann.) | 37.4% | 19.3% |
| Beta vs S&P 500 | 0.90 | 0.65 |
| Max drawdown (3Y) | -61.3% | -15.8% |
| Market cap | $0.3B | $6.1B |
| P/E (trailing) | – | 27.0 |
| Dividend yield | 12.96% | 12.07% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ACRE | STWD |
|---|---|---|
| 2022 | -20.4% | -17.3% |
| 2023 | +15.6% | +26.7% |
| 2024 | -34.0% | -0.6% |
| 2025 | -7.9% | +4.9% |
| 2026 | +3.4% | -6.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACRE and STWD good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ACRE and STWD?
Using weekly returns as of 2026-08-27: 0.57 over 3 years, with 0.66 over the last year and 0.68 over 5 years.
Is STWD a good diversifier for ACRE?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acre-vs-stwd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/acre-vs-stwd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ACRE correlations · STWD correlations
