ARCC vs VXX: Correlation
How closely do Ares Capital Corporation - Closed End Fund (ARCC) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) trade together? Their weekly returns over three years give a correlation of -0.56, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and VXX?
Across a 3-year window, the weekly returns of ARCC and VXX correlate at -0.56, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.40 versus -0.56 over 3 years. Stretching to 5 years gives -0.49, with an annualized covariance of -543.3 %².
VXX is close to the least connected end of ARCC's tracked universe, ranking #31 of 31. The last year tells two different stories: ARCC led by 47.9 percentage points, -1.8% for ARCC against -49.7% for VXX. Risk is not evenly split, since VXX carries 3.9 times the volatility of the other side.
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 VXX: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | -1.8% | -49.7% |
| 5-year return | +59.8% | -95.6% |
| Volatility (ann.) | 15.8% | 60.9% |
| Beta vs S&P 500 | 0.62 | -3.31 |
| Max drawdown (3Y) | -19.3% | -83.3% |
| Market cap | $14.3B | – |
| P/E (trailing) | 14.8 | – |
| Dividend yield | 9.65% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | VXX |
|---|---|---|
| 2022 | -3.8% | -23.8% |
| 2023 | +20.0% | -72.5% |
| 2024 | +19.8% | -26.2% |
| 2025 | +1.1% | -42.2% |
| 2026 | +3.5% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and VXX good diversifiers for each other?
Yes. With a correlation of -0.56, ARCC and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between ARCC and VXX?
The ARCC/VXX correlation stands at -0.56 on a 3-year window (1 year: -0.40, 5 years: -0.49), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for ARCC?
Yes. With a correlation of -0.56, ARCC and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.56 mean?
On the −1 to +1 scale, -0.56 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-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arcc-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ARCC correlations · VXX correlations
