ARCC vs TSLX: Correlation
How closely do Ares Capital Corporation - Closed End Fund (ARCC) and Sixth Street Specialty Lending, Inc. (TSLX) trade together? Their weekly returns over three years give a correlation of 0.75, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and TSLX?
Across a 3-year window, the weekly returns of ARCC and TSLX correlate at 0.75, strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.75 over 3. Stretching to 5 years gives 0.74, with an annualized covariance of 243.3 %².
Within ARCC's tracked universe of 31 assets, TSLX comes in at #10 by 3-year correlation. Over the last 12 months ARCC came out ahead by 13.2 percentage points (-1.8% against -15.0%).
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 TSLX: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | TSLX (Sixth Street Specialty Lending, Inc.) | |
|---|---|---|
| 1-year return | -1.8% | -15.0% |
| 5-year return | +59.8% | +35.2% |
| Volatility (ann.) | 15.8% | 20.5% |
| Beta vs S&P 500 | 0.62 | 0.60 |
| Max drawdown (3Y) | -19.3% | -29.0% |
| Market cap | $14.3B | $1.8B |
| P/E (trailing) | 14.8 | 19.9 |
| Dividend yield | 9.65% | 10.04% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | TSLX |
|---|---|---|
| 2022 | -3.8% | -16.4% |
| 2023 | +20.0% | +35.3% |
| 2024 | +19.8% | +8.8% |
| 2025 | +1.1% | +11.5% |
| 2026 | +3.5% | -9.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and TSLX good diversifiers for each other?
To a limited degree. At 0.75 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 TSLX?
Using weekly returns as of 2026-08-27: 0.75 over 3 years, with 0.74 over the last year and 0.74 over 5 years.
Is TSLX a good diversifier for ARCC?
To a limited degree. At 0.75 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 0.75 mean?
A reading of 0.75 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-tslx.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/arcc-vs-tslx/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARCC correlations · TSLX correlations
