Redwood Trust Stock Market Value
| RWT Stock | USD 7.16 0.03 0.42% |
| Symbol | Redwood |
Redwood Trust Price To Book Ratio
Is Mortgage Real Estate Investment Trusts (REITs) space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Redwood Trust. If investors know Redwood will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Redwood Trust listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 45.372 | Dividend Share 0.65 | Earnings Share 0.56 | Revenue Per Share 2.073 | Quarterly Revenue Growth 5.482 |
The market value of Redwood Trust is measured differently than its book value, which is the value of Redwood that is recorded on the company's balance sheet. Investors also form their own opinion of Redwood Trust's value that differs from its market value or its book value, called intrinsic value, which is Redwood Trust's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Redwood Trust's market value can be influenced by many factors that don't directly affect Redwood Trust's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Redwood Trust's value and its price as these two are different measures arrived at by different means. Investors typically determine if Redwood Trust is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Redwood Trust's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Redwood Trust 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Redwood Trust's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Redwood Trust.
| 06/05/2024 |
| 12/02/2024 |
If you would invest 0.00 in Redwood Trust on June 5, 2024 and sell it all today you would earn a total of 0.00 from holding Redwood Trust or generate 0.0% return on investment in Redwood Trust over 180 days. Redwood Trust is related to or competes with ARMOUR Residential, Ellington Financial, Ares Commercial, Cherry Hill, Two Harbors, AGNC Investment, and Invesco Mortgage. Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States More
Redwood Trust Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Redwood Trust's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Redwood Trust upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.10) | |||
| Maximum Drawdown | 10.13 | |||
| Value At Risk | (2.16) | |||
| Potential Upside | 2.37 |
Redwood Trust Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Redwood Trust's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Redwood Trust's standard deviation. In reality, there are many statistical measures that can use Redwood Trust historical prices to predict the future Redwood Trust's volatility.| Risk Adjusted Performance | (0) | |||
| Jensen Alpha | (0.10) | |||
| Total Risk Alpha | (0.27) | |||
| Treynor Ratio | (0.04) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Redwood Trust's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Redwood Trust Backtested Returns
Redwood Trust maintains Sharpe Ratio (i.e., Efficiency) of -0.0059, which implies the firm had a -0.0059% return per unit of risk over the last 3 months. Redwood Trust exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Redwood Trust's Coefficient Of Variation of (10,484), insignificant risk adjusted performance, and Variance of 2.23 to confirm the risk estimate we provide. The company holds a Beta of 0.6, which implies possible diversification benefits within a given portfolio. As returns on the market increase, Redwood Trust's returns are expected to increase less than the market. However, during the bear market, the loss of holding Redwood Trust is expected to be smaller as well. At this point, Redwood Trust has a negative expected return of -0.0087%. Please make sure to check Redwood Trust's coefficient of variation, value at risk, as well as the relationship between the Value At Risk and rate of daily change , to decide if Redwood Trust performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.37 |
Poor reverse predictability
Redwood Trust has poor reverse predictability. Overlapping area represents the amount of predictability between Redwood Trust time series from 5th of June 2024 to 3rd of September 2024 and 3rd of September 2024 to 2nd of December 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Redwood Trust price movement. The serial correlation of -0.37 indicates that just about 37.0% of current Redwood Trust price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.37 | |
| Spearman Rank Test | -0.47 | |
| Residual Average | 0.0 | |
| Price Variance | 0.06 |
Redwood Trust lagged returns against current returns
Autocorrelation, which is Redwood Trust stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Redwood Trust's stock expected returns. We can calculate the autocorrelation of Redwood Trust returns to help us make a trade decision. For example, suppose you find that Redwood Trust has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Redwood Trust regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Redwood Trust stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Redwood Trust stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Redwood Trust stock over time.
Current vs Lagged Prices |
| Timeline |
Redwood Trust Lagged Returns
When evaluating Redwood Trust's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Redwood Trust stock have on its future price. Redwood Trust autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Redwood Trust autocorrelation shows the relationship between Redwood Trust stock current value and its past values and can show if there is a momentum factor associated with investing in Redwood Trust.
Regressed Prices |
| Timeline |
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Additional Tools for Redwood Stock Analysis
When running Redwood Trust's price analysis, check to measure Redwood Trust's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Redwood Trust is operating at the current time. Most of Redwood Trust's value examination focuses on studying past and present price action to predict the probability of Redwood Trust's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Redwood Trust's price. Additionally, you may evaluate how the addition of Redwood Trust to your portfolios can decrease your overall portfolio volatility.