PMT vs STWD: Correlation
How closely do PennyMac Mortgage Investment Trust (PMT) and STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc. (STWD) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PMT and STWD?
On 3 years of weekly data the PMT/STWD correlation comes out at 0.63, strong. Lately the two have drifted apart, with the 1-year correlation at 0.52 versus 0.63 over 3 years. The 5-year figure is 0.70, and annualized covariance runs at 314.1 %².
STWD is one of the assets that tracks PMT most closely: it ranks #3 out of the 11 assets we track against PMT. Their 12-month results are close: -11.8% for PMT against -11.8% for STWD.
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.
PMT vs STWD: side by side
| PMT (PennyMac Mortgage Investment Trust) | STWD (STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc.) | |
|---|---|---|
| 1-year return | -11.8% | -11.8% |
| 5-year return | -9.4% | +0.5% |
| Volatility (ann.) | 25.8% | 19.3% |
| Beta vs S&P 500 | 0.49 | 0.65 |
| Max drawdown (3Y) | -28.1% | -15.8% |
| Market cap | – | $6.1B |
| P/E (trailing) | 6.5 | 27.0 |
| Dividend yield | 17.33% | 12.07% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PMT | STWD |
|---|---|---|
| 2022 | -18.1% | -17.3% |
| 2023 | +36.1% | +26.7% |
| 2024 | -5.4% | -0.6% |
| 2025 | +13.2% | +4.9% |
| 2026 | -20.0% | -6.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PMT and STWD good diversifiers for each other?
To a limited degree. At 0.63 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 PMT and STWD?
The PMT/STWD correlation stands at 0.63 on a 3-year window (1 year: 0.52, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is STWD a good diversifier for PMT?
To a limited degree. At 0.63 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 0.63 mean?
A reading of 0.63 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/pmt-vs-stwd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/pmt-vs-stwd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PMT correlations · STWD correlations
