ARCC vs PNNT: Correlation
Measured on weekly returns over the past three years, Ares Capital Corporation - Closed End Fund (ARCC) and PennantPark Investment Corporation (PNNT) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and PNNT?
On 3 years of weekly data the ARCC/PNNT correlation comes out at 0.63, strong. The relationship has been stable: the 1-year correlation (0.62) sits close to the 3-year figure. The 5-year figure is 0.63, and annualized covariance runs at 216.3 %².
Within ARCC's tracked universe of 31 assets, PNNT comes in at #21 by 3-year correlation. The last year tells two different stories: ARCC led by 34.6 percentage points, -1.8% for ARCC against -36.4% for PNNT.
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 PNNT: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | PNNT (PennantPark Investment Corporation) | |
|---|---|---|
| 1-year return | -1.8% | -36.4% |
| 5-year return | +59.8% | +13.8% |
| Volatility (ann.) | 15.8% | 21.6% |
| Beta vs S&P 500 | 0.62 | 0.61 |
| Max drawdown (3Y) | -19.3% | -47.6% |
| Market cap | $14.3B | $0.2B |
| P/E (trailing) | 14.8 | 24.9 |
| Dividend yield | 9.65% | 21.28% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | PNNT |
|---|---|---|
| 2022 | -3.8% | -8.9% |
| 2023 | +20.0% | +37.3% |
| 2024 | +19.8% | +16.6% |
| 2025 | +1.1% | -3.0% |
| 2026 | +3.5% | -27.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and PNNT good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ARCC and PNNT?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.62 over the last year and 0.63 over 5 years.
Is PNNT a good diversifier for ARCC?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.63 mean?
A reading of 0.63 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-pnnt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arcc-vs-pnnt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARCC correlations · PNNT correlations
