ARCC vs SPY: Correlation
Ares Capital Corporation - Closed End Fund (ARCC) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and SPY?
On 3 years of weekly data the ARCC/SPY correlation comes out at 0.56, moderate. Recent behaviour matches the longer record: 0.53 over 1 year against 0.56 over 3. The 5-year figure is 0.63, and annualized covariance runs at 129.1 %².
Among the 31 assets we track against ARCC, SPY ranks #23 by 3-year correlation. The last year tells two different stories: SPY led by 22.4 percentage points, -1.8% for ARCC against +20.6% for SPY.
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 SPY: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -1.8% | +20.6% |
| 5-year return | +59.8% | +82.4% |
| Volatility (ann.) | 15.8% | 14.5% |
| Beta vs S&P 500 | 0.62 | 1.00 |
| Max drawdown (3Y) | -19.3% | -18.8% |
| Market cap | $14.3B | – |
| P/E (trailing) | 14.8 | – |
| Dividend yield | 9.65% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | ARCC | SPY |
|---|---|---|
| 2022 | -3.8% | -18.2% |
| 2023 | +20.0% | +26.2% |
| 2024 | +19.8% | +24.9% |
| 2025 | +1.1% | +17.7% |
| 2026 | +3.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and SPY good diversifiers for each other?
To a limited degree. At 0.56 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 SPY?
As of 2026-08-27, the correlation of weekly returns between ARCC and SPY is 0.56 over 3 years, 0.53 over 1 year and 0.63 over 5 years.
Is SPY a good diversifier for ARCC?
To a limited degree. At 0.56 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 0.56 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: ARCC correlations · SPY correlations
