ARCC vs BBDC: Correlation
Ares Capital Corporation - Closed End Fund (ARCC) and Barings BDC, Inc. (BBDC) show a strong relationship: their 3-year correlation of weekly returns is 0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and BBDC?
Over the past 3 years, ARCC and BBDC moved with a correlation of 0.72, which is strong. The relationship has been stable: the 1-year correlation (0.79) sits close to the 3-year figure. Over 5 years the correlation is 0.71, and the annualized covariance of weekly returns is 223.5 %².
Among the 31 assets we track against ARCC, BBDC ranks #14 by 3-year correlation. The trailing year gives BBDC the advantage: -1.8% versus +7.8%, a 9.6-point spread.
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.
ARCC vs BBDC: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | BBDC (Barings BDC, Inc.) | |
|---|---|---|
| 1-year return | -1.8% | +7.8% |
| 5-year return | +59.8% | +50.4% |
| Volatility (ann.) | 15.8% | 19.5% |
| Beta vs S&P 500 | 0.62 | 0.60 |
| Max drawdown (3Y) | -19.3% | -24.5% |
| Market cap | $14.3B | $1.0B |
| P/E (trailing) | 14.8 | 11.4 |
| Dividend yield | 9.65% | 11.12% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | BBDC |
|---|---|---|
| 2022 | -3.8% | -18.6% |
| 2023 | +20.0% | +18.5% |
| 2024 | +19.8% | +23.9% |
| 2025 | +1.1% | +8.8% |
| 2026 | +3.5% | +8.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and BBDC good diversifiers for each other?
Only partially. A correlation of 0.72 means ARCC and BBDC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ARCC and BBDC?
The ARCC/BBDC correlation stands at 0.72 on a 3-year window (1 year: 0.79, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is BBDC a good diversifier for ARCC?
Only partially. A correlation of 0.72 means ARCC and BBDC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
A reading of 0.72 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/arcc-vs-bbdc.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arcc-vs-bbdc/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARCC correlations · BBDC correlations
