ARCC vs TCPC: Correlation
Ares Capital Corporation - Closed End Fund (ARCC) and BlackRock TCP Capital Corp. - Closed End Fund (TCPC) show a strong relationship: their 3-year correlation of weekly returns is 0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and TCPC?
Over the past 3 years, ARCC and TCPC moved with a correlation of 0.72, which is strong. The relationship has been stable: the 1-year correlation (0.82) sits close to the 3-year figure. Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 376.3 %².
By 3-year correlation, TCPC places #17 of the 31 assets tracked against ARCC. Their recent paths diverged sharply: over the last 12 months ARCC outperformed by 28.9 percentage points (-1.8% for ARCC against -30.7% for TCPC). One caveat on sizing: TCPC is 2.1 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 TCPC: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | TCPC (BlackRock TCP Capital Corp. - Closed End Fund) | |
|---|---|---|
| 1-year return | -1.8% | -30.7% |
| 5-year return | +59.8% | -42.1% |
| Volatility (ann.) | 15.8% | 33.1% |
| Beta vs S&P 500 | 0.62 | 0.94 |
| Max drawdown (3Y) | -19.3% | -60.8% |
| Market cap | $14.3B | $0.3B |
| P/E (trailing) | 14.8 | – |
| Dividend yield | 9.65% | 20.34% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | TCPC |
|---|---|---|
| 2022 | -3.8% | +5.6% |
| 2023 | +20.0% | +3.2% |
| 2024 | +19.8% | -12.3% |
| 2025 | +1.1% | -26.2% |
| 2026 | +3.5% | -16.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and TCPC good diversifiers for each other?
Only partially. A correlation of 0.72 means ARCC and TCPC 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 TCPC?
The ARCC/TCPC correlation stands at 0.72 on a 3-year window (1 year: 0.82, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is TCPC a good diversifier for ARCC?
Only partially. A correlation of 0.72 means ARCC and TCPC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
A reading of 0.72 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: ARCC correlations · TCPC correlations
