MITT vs RWT: Correlation
TPG Mortgage Investment Trust, Inc. (MITT) and Redwood Trust, Inc. (RWT) show a strong relationship: their 3-year correlation of weekly returns is 0.62.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MITT and RWT?
Over the past 3 years, MITT and RWT moved with a correlation of 0.62, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.46 versus 0.62 over 3 years. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 561.9 %².
RWT is one of the assets that tracks MITT most closely: it ranks #3 out of the 13 assets we track against MITT. Over the last 12 months MITT came out ahead by 12.1 percentage points (+0.3% 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.
MITT vs RWT: side by side
| MITT (TPG Mortgage Investment Trust, Inc.) | RWT (Redwood Trust, Inc.) | |
|---|---|---|
| 1-year return | +0.3% | -11.8% |
| 5-year return | +11.0% | -35.7% |
| Volatility (ann.) | 28.8% | 31.6% |
| Beta vs S&P 500 | 0.75 | 0.87 |
| Max drawdown (3Y) | -26.9% | -33.8% |
| Market cap | $0.2B | $0.6B |
| P/E (trailing) | 8.9 | – |
| Dividend yield | 13.86% | 15.62% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MITT | RWT |
|---|---|---|
| 2022 | -41.0% | -42.3% |
| 2023 | +35.8% | +21.6% |
| 2024 | +17.1% | -2.6% |
| 2025 | +42.8% | -4.1% |
| 2026 | -16.7% | -10.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MITT and RWT good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MITT and RWT?
As of 2026-08-27, the correlation of weekly returns between MITT and RWT is 0.62 over 3 years, 0.46 over 1 year and 0.65 over 5 years.
Is RWT a good diversifier for MITT?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
A reading of 0.62 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/mitt-vs-rwt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mitt-vs-rwt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MITT correlations · RWT correlations
