ARCC vs SCM: Correlation
How closely do Ares Capital Corporation - Closed End Fund (ARCC) and Stellus Capital Investment Corporation (SCM) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and SCM?
Over the past 3 years, ARCC and SCM moved with a correlation of 0.67, which is strong. The relationship has been stable: the 1-year correlation (0.66) sits close to the 3-year figure. Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 258.8 %².
Within ARCC's tracked universe of 31 assets, SCM comes in at #19 by 3-year correlation. The last year tells two different stories: ARCC led by 30.9 percentage points, -1.8% for ARCC against -32.7% for SCM. One caveat on sizing: SCM is 1.5 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 SCM: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | SCM (Stellus Capital Investment Corporation) | |
|---|---|---|
| 1-year return | -1.8% | -32.7% |
| 5-year return | +59.8% | +16.7% |
| Volatility (ann.) | 15.8% | 24.4% |
| Beta vs S&P 500 | 0.62 | 0.68 |
| Max drawdown (3Y) | -19.3% | -47.8% |
| Market cap | $14.3B | $0.2B |
| P/E (trailing) | 14.8 | 8.4 |
| Dividend yield | 9.65% | 17.12% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | SCM |
|---|---|---|
| 2022 | -3.8% | +12.9% |
| 2023 | +20.0% | +8.7% |
| 2024 | +19.8% | +20.3% |
| 2025 | +1.1% | +3.7% |
| 2026 | +3.5% | -26.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and SCM good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ARCC and SCM?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.66 over the last year and 0.61 over 5 years.
Is SCM a good diversifier for ARCC?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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-scm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arcc-vs-scm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ARCC correlations · SCM correlations
