ARCC vs HTGC: Correlation
How closely do Ares Capital Corporation - Closed End Fund (ARCC) and Hercules Capital, Inc. (HTGC) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and HTGC?
Across a 3-year window, the weekly returns of ARCC and HTGC correlate at 0.72, strong. Little has changed lately, as the 1-year reading of 0.75 lands near the 3-year figure. Stretching to 5 years gives 0.70, with an annualized covariance of 255.4 %².
Among the 31 assets we track against ARCC, HTGC ranks #16 by 3-year correlation. Their 12-month results are close: -1.8% for ARCC against +1.4% for HTGC.
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 HTGC: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | HTGC (Hercules Capital, Inc.) | |
|---|---|---|
| 1-year return | -1.8% | +1.4% |
| 5-year return | +59.8% | +82.3% |
| Volatility (ann.) | 15.8% | 22.4% |
| Beta vs S&P 500 | 0.62 | 0.79 |
| Max drawdown (3Y) | -19.3% | -28.0% |
| Market cap | $14.3B | $3.3B |
| P/E (trailing) | 14.8 | 8.7 |
| Dividend yield | 9.65% | 9.07% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | HTGC |
|---|---|---|
| 2022 | -3.8% | -9.5% |
| 2023 | +20.0% | +42.9% |
| 2024 | +19.8% | +32.8% |
| 2025 | +1.1% | +3.5% |
| 2026 | +3.5% | +1.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and HTGC 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 HTGC?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.75 over the last year and 0.70 over 5 years.
Is HTGC 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?
On the −1 to +1 scale, 0.72 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/arcc-vs-htgc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/arcc-vs-htgc/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARCC correlations · HTGC correlations
