ARCC vs FNGD: Correlation
Ares Capital Corporation - Closed End Fund (ARCC) and MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) show a negative relationship: their 3-year correlation of weekly returns is -0.38.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and FNGD?
On 3 years of weekly data the ARCC/FNGD correlation comes out at -0.38, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.45 over 1 year against -0.38 over 3. The 5-year figure is -0.41, and annualized covariance runs at -454.2 %².
Out of 31 assets tracked against ARCC, FNGD lands near the bottom at #29. Their recent paths diverged sharply: over the last 12 months ARCC outperformed by 53.9 percentage points (-1.8% for ARCC against -55.7% for FNGD). One caveat on sizing: FNGD is 4.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 FNGD: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | |
|---|---|---|
| 1-year return | -1.8% | -55.7% |
| 5-year return | +59.8% | -99.4% |
| Volatility (ann.) | 15.8% | 75.7% |
| Beta vs S&P 500 | 0.62 | -4.54 |
| Max drawdown (3Y) | -19.3% | -97.6% |
| Market cap | $14.3B | – |
| P/E (trailing) | 14.8 | 20.6 |
| Dividend yield | 9.65% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | FNGD |
|---|---|---|
| 2022 | -3.8% | +52.2% |
| 2023 | +20.0% | -90.1% |
| 2024 | +19.8% | -76.6% |
| 2025 | +1.1% | -61.4% |
| 2026 | +3.5% | -49.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and FNGD good diversifiers for each other?
By historical standards, yes. A correlation of -0.38 means the two rarely move for the same reasons.
FAQ
What is the correlation between ARCC and FNGD?
Using weekly returns as of 2026-08-27: -0.38 over 3 years, with -0.45 over the last year and -0.41 over 5 years.
Is FNGD a good diversifier for ARCC?
By historical standards, yes. A correlation of -0.38 means the two rarely move for the same reasons.
What does a correlation of -0.38 mean?
A reading of -0.38 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-fngd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/arcc-vs-fngd/)
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Related comparisons
Hubs: ARCC correlations · FNGD correlations
