ARCC vs PFLT: Correlation
Ares Capital Corporation - Closed End Fund (ARCC) and PennantPark Floating Rate Capital Ltd. (PFLT) show a strong relationship: their 3-year correlation of weekly returns is 0.73.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and PFLT?
On 3 years of weekly data the ARCC/PFLT correlation comes out at 0.73, strong. Little has changed lately, as the 1-year reading of 0.74 lands near the 3-year figure. The 5-year figure is 0.69, and annualized covariance runs at 233.4 %².
By 3-year correlation, PFLT places #13 of the 31 assets tracked against ARCC. The trailing year gives ARCC the advantage: -1.8% versus -16.0%, a 14.2-point spread.
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 PFLT: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | PFLT (PennantPark Floating Rate Capital Ltd.) | |
|---|---|---|
| 1-year return | -1.8% | -16.0% |
| 5-year return | +59.8% | +1.5% |
| Volatility (ann.) | 15.8% | 20.1% |
| Beta vs S&P 500 | 0.62 | 0.69 |
| Max drawdown (3Y) | -19.3% | -28.4% |
| Market cap | $14.3B | $0.7B |
| P/E (trailing) | 14.8 | 14.6 |
| Dividend yield | 9.65% | 16.43% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | PFLT |
|---|---|---|
| 2022 | -3.8% | -5.5% |
| 2023 | +20.0% | +23.1% |
| 2024 | +19.8% | +0.7% |
| 2025 | +1.1% | -4.1% |
| 2026 | +3.5% | -12.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and PFLT good diversifiers for each other?
Only partially. A correlation of 0.73 means ARCC and PFLT 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 PFLT?
As of 2026-08-27, the correlation of weekly returns between ARCC and PFLT is 0.73 over 3 years, 0.74 over 1 year and 0.69 over 5 years.
Is PFLT a good diversifier for ARCC?
Only partially. A correlation of 0.73 means ARCC and PFLT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
A reading of 0.73 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
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Related comparisons
Hubs: ARCC correlations · PFLT correlations
