ARCC vs BDCZ: Correlation
How closely do Ares Capital Corporation - Closed End Fund (ARCC) and ETRACS MarketVector Business Development Companies Liquid (BDCZ) trade together? Their weekly returns over three years give a correlation of 0.90, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and BDCZ?
Across a 3-year window, the weekly returns of ARCC and BDCZ correlate at 0.90, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.92 over 1 year against 0.90 over 3. Stretching to 5 years gives 0.90, with an annualized covariance of 228.7 %².
Few assets follow ARCC as closely as BDCZ, which ranks #1 of 31 tracked partners. Twelve-month performance is nearly a tie, at -1.8% for ARCC and -4.0% for BDCZ.
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 BDCZ: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | BDCZ (ETRACS MarketVector Business Development Companies Liquid) | |
|---|---|---|
| 1-year return | -1.8% | -4.0% |
| 5-year return | +59.8% | +29.0% |
| Volatility (ann.) | 15.8% | 16.0% |
| Beta vs S&P 500 | 0.62 | 0.58 |
| Max drawdown (3Y) | -19.3% | -20.8% |
| Market cap | $14.3B | – |
| P/E (trailing) | 14.8 | – |
| Dividend yield | 9.65% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | BDCZ |
|---|---|---|
| 2022 | -3.8% | -9.1% |
| 2023 | +20.0% | +25.3% |
| 2024 | +19.8% | +12.2% |
| 2025 | +1.1% | -3.7% |
| 2026 | +3.5% | +0.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and BDCZ good diversifiers for each other?
No. With a correlation of 0.90, ARCC and BDCZ move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ARCC and BDCZ?
Using weekly returns as of 2026-08-27: 0.90 over 3 years, with 0.92 over the last year and 0.90 over 5 years.
Is BDCZ a good diversifier for ARCC?
No. With a correlation of 0.90, ARCC and BDCZ move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.90 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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[](https://www.pairbook.io/pair/arcc-vs-bdcz/)
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Related comparisons
Hubs: ARCC correlations · BDCZ correlations
