ARCC vs FSK: Correlation
Measured on weekly returns over the past three years, Ares Capital Corporation - Closed End Fund (ARCC) and FS KKR Capital Corp. (FSK) carry a correlation of 0.72, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and FSK?
On 3 years of weekly data the ARCC/FSK correlation comes out at 0.72, strong. Little has changed lately, as the 1-year reading of 0.77 lands near the 3-year figure. The 5-year figure is 0.71, and annualized covariance runs at 303.9 %².
By 3-year correlation, FSK places #15 of the 31 assets tracked against ARCC. The last year tells two different stories: ARCC led by 17.3 percentage points, -1.8% for ARCC against -19.1% for FSK. One caveat on sizing: FSK is 1.7 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 FSK: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | FSK (FS KKR Capital Corp.) | |
|---|---|---|
| 1-year return | -1.8% | -19.1% |
| 5-year return | +59.8% | +10.8% |
| Volatility (ann.) | 15.8% | 26.7% |
| Beta vs S&P 500 | 0.62 | 0.63 |
| Max drawdown (3Y) | -19.3% | -51.0% |
| Market cap | $14.3B | $3.4B |
| P/E (trailing) | 14.8 | – |
| Dividend yield | 9.65% | 17.68% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | FSK |
|---|---|---|
| 2022 | -3.8% | -4.7% |
| 2023 | +20.0% | +33.0% |
| 2024 | +19.8% | +25.7% |
| 2025 | +1.1% | -20.4% |
| 2026 | +3.5% | -9.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and FSK good diversifiers for each other?
To a limited degree. At 0.72 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 ARCC and FSK?
The ARCC/FSK correlation stands at 0.72 on a 3-year window (1 year: 0.77, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is FSK a good diversifier for ARCC?
To a limited degree. At 0.72 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 0.72 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-fsk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/arcc-vs-fsk/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARCC correlations · FSK correlations
