ARCC vs NMFC: Correlation
How closely do Ares Capital Corporation - Closed End Fund (ARCC) and New Mountain Finance Corporation (NMFC) trade together? Their weekly returns over three years give a correlation of 0.78, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and NMFC?
On 3 years of weekly data the ARCC/NMFC correlation comes out at 0.78, strong. Little has changed lately, as the 1-year reading of 0.85 lands near the 3-year figure. The 5-year figure is 0.71, and annualized covariance runs at 242.1 %².
Among the 31 assets we track against ARCC, NMFC ranks #4 by 3-year correlation. On 12-month performance ARCC holds a 14.3-point edge, -1.8% against -16.1%.
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 NMFC: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | NMFC (New Mountain Finance Corporation) | |
|---|---|---|
| 1-year return | -1.8% | -16.1% |
| 5-year return | +59.8% | +1.4% |
| Volatility (ann.) | 15.8% | 19.7% |
| Beta vs S&P 500 | 0.62 | 0.53 |
| Max drawdown (3Y) | -19.3% | -30.6% |
| Market cap | $14.3B | $0.7B |
| P/E (trailing) | 14.8 | – |
| Dividend yield | 9.65% | 15.98% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | NMFC |
|---|---|---|
| 2022 | -3.8% | -0.6% |
| 2023 | +20.0% | +15.8% |
| 2024 | +19.8% | -0.9% |
| 2025 | +1.1% | -7.2% |
| 2026 | +3.5% | -10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and NMFC good diversifiers for each other?
To a limited degree. At 0.78 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 NMFC?
Using weekly returns as of 2026-08-27: 0.78 over 3 years, with 0.85 over the last year and 0.71 over 5 years.
Is NMFC a good diversifier for ARCC?
To a limited degree. At 0.78 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 0.78 mean?
A reading of 0.78 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-nmfc.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arcc-vs-nmfc/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARCC correlations · NMFC correlations
