ARCC vs VXZ: Correlation
Measured on weekly returns over the past three years, Ares Capital Corporation - Closed End Fund (ARCC) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.55, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCC and VXZ?
Over the past 3 years, ARCC and VXZ moved with a correlation of -0.55, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.46) sits close to the 3-year figure. Over 5 years the correlation is -0.52, and the annualized covariance of weekly returns is -223.6 %².
Out of 31 assets tracked against ARCC, VXZ lands near the bottom at #30. The trailing year gives ARCC the advantage: -1.8% versus -16.1%, a 14.3-point spread. Note the risk asymmetry: VXZ runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 VXZ: side by side
| ARCC (Ares Capital Corporation - Closed End Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -1.8% | -16.1% |
| 5-year return | +59.8% | -53.1% |
| Volatility (ann.) | 15.8% | 25.6% |
| Beta vs S&P 500 | 0.62 | -1.31 |
| Max drawdown (3Y) | -19.3% | -36.4% |
| Market cap | $14.3B | – |
| P/E (trailing) | 14.8 | – |
| Dividend yield | 9.65% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCC | VXZ |
|---|---|---|
| 2022 | -3.8% | +0.5% |
| 2023 | +20.0% | -44.0% |
| 2024 | +19.8% | -12.7% |
| 2025 | +1.1% | +5.7% |
| 2026 | +3.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCC and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.55 means the two rarely move for the same reasons.
FAQ
What is the correlation between ARCC and VXZ?
Using weekly returns as of 2026-08-27: -0.55 over 3 years, with -0.46 over the last year and -0.52 over 5 years.
Is VXZ a good diversifier for ARCC?
By historical standards, yes. A correlation of -0.55 means the two rarely move for the same reasons.
What does a correlation of -0.55 mean?
A reading of -0.55 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-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arcc-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ARCC correlations · VXZ correlations
