CIM vs RWT: Correlation
How closely do Chimera Investment Corporation (CIM) and Redwood Trust, Inc. (RWT) trade together? Their weekly returns over three years give a correlation of 0.68, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CIM and RWT?
Across a 3-year window, the weekly returns of CIM and RWT correlate at 0.68, strong. Little has changed lately, as the 1-year reading of 0.72 lands near the 3-year figure. Stretching to 5 years gives 0.75, with an annualized covariance of 634.6 %².
RWT is one of the assets that tracks CIM most closely: it ranks #2 out of the 11 assets we track against CIM. Neither side won the trailing year by much: -6.9% against -11.8%.
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.
CIM vs RWT: side by side
| CIM (Chimera Investment Corporation) | RWT (Redwood Trust, Inc.) | |
|---|---|---|
| 1-year return | -6.9% | -11.8% |
| 5-year return | -54.1% | -35.7% |
| Volatility (ann.) | 29.4% | 31.6% |
| Beta vs S&P 500 | 0.76 | 0.87 |
| Max drawdown (3Y) | -33.1% | -33.8% |
| Market cap | $1.0B | $0.6B |
| P/E (trailing) | – | – |
| Dividend yield | 14.29% | 15.62% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CIM | RWT |
|---|---|---|
| 2022 | -57.9% | -42.3% |
| 2023 | +2.9% | +21.6% |
| 2024 | +3.6% | -2.6% |
| 2025 | -0.6% | -4.1% |
| 2026 | -0.7% | -10.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CIM and RWT good diversifiers for each other?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between CIM and RWT?
The CIM/RWT correlation stands at 0.68 on a 3-year window (1 year: 0.72, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is RWT a good diversifier for CIM?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.68 mean?
A reading of 0.68 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cim-vs-rwt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cim-vs-rwt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CIM correlations · RWT correlations
