NEWT vs TOWN: Correlation
Measured on weekly returns over the past three years, NewtekOne, Inc. (NEWT) and Towne Bank (TOWN) carry a correlation of 0.65, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NEWT and TOWN?
Across a 3-year window, the weekly returns of NEWT and TOWN correlate at 0.65, strong. Recent behaviour matches the longer record: 0.62 over 1 year against 0.65 over 3. Stretching to 5 years gives 0.52, with an annualized covariance of 629.2 %².
Within NEWT's tracked universe of 17 assets, TOWN comes in at #4 by 3-year correlation. Neither side won the trailing year by much: +5.9% against +6.7%. Note the risk asymmetry: NEWT runs 1.6 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.
NEWT vs TOWN: side by side
| NEWT (NewtekOne, Inc.) | TOWN (Towne Bank) | |
|---|---|---|
| 1-year return | +5.9% | +6.7% |
| 5-year return | -35.1% | +47.6% |
| Volatility (ann.) | 38.9% | 25.0% |
| Beta vs S&P 500 | 1.15 | 0.77 |
| Max drawdown (3Y) | -43.8% | -18.4% |
| Market cap | $0.4B | $3.5B |
| P/E (trailing) | 5.6 | 18.0 |
| Dividend yield | 6.16% | 2.90% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NEWT | TOWN |
|---|---|---|
| 2022 | -33.2% | +0.7% |
| 2023 | -10.7% | +0.3% |
| 2024 | -1.6% | +18.3% |
| 2025 | -4.9% | +1.0% |
| 2026 | +11.9% | +16.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NEWT and TOWN good diversifiers for each other?
Somewhat, no more. With 0.65 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NEWT and TOWN?
As of 2026-08-27, the correlation of weekly returns between NEWT and TOWN is 0.65 over 3 years, 0.62 over 1 year and 0.52 over 5 years.
Is TOWN a good diversifier for NEWT?
Somewhat, no more. With 0.65 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.65 mean?
A reading of 0.65 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: NEWT correlations · TOWN correlations
