ARCC vs GECC: Correlation
Measured on weekly returns over the past three years, Ares Capital Corporation - Closed End Fund (ARCC) and Great Elm Capital Corp. - Closed End Fund (GECC) carry a correlation of 0.53, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and GECC?
Across a 3-year window, the weekly returns of ARCC and GECC correlate at 0.53, moderate. Little has changed lately, as the 1-year reading of 0.55 lands near the 3-year figure. Stretching to 5 years gives 0.35, with an annualized covariance of 253.5 %².
By 3-year correlation, GECC places #24 of the 31 assets tracked against ARCC. Correlation aside, the last 12 months split them widely, with ARCC ahead by 34.4 points (-1.8% versus -36.2%). One caveat on sizing: GECC is 1.9 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 GECC: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | GECC (Great Elm Capital Corp. - Closed End Fund) | |
|---|---|---|
| 1-year return | -1.8% | -36.2% |
| 5-year return | +59.8% | -40.4% |
| Volatility (ann.) | 15.8% | 30.5% |
| Beta vs S&P 500 | 0.62 | 0.62 |
| Max drawdown (3Y) | -19.3% | -54.0% |
| Market cap | $14.3B | $0.1B |
| P/E (trailing) | 14.8 | – |
| Dividend yield | 9.65% | 21.54% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | GECC |
|---|---|---|
| 2022 | -3.8% | -47.4% |
| 2023 | +20.0% | +49.4% |
| 2024 | +19.8% | +18.9% |
| 2025 | +1.1% | -25.4% |
| 2026 | +3.5% | -6.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and GECC good diversifiers for each other?
Only partially. A correlation of 0.53 means ARCC and GECC 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 GECC?
The ARCC/GECC correlation stands at 0.53 on a 3-year window (1 year: 0.55, 5 years: 0.35), computed from weekly returns as of 2026-08-27.
Is GECC a good diversifier for ARCC?
Only partially. A correlation of 0.53 means ARCC and GECC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.53 mean?
A reading of 0.53 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-gecc.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arcc-vs-gecc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ARCC correlations · GECC correlations
