ARDC vs BGH: Correlation
How closely do Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and Barings Global Short Duration High Yield Fund (BGH) trade together? Their weekly returns over three years give a correlation of 0.65, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARDC and BGH?
On 3 years of weekly data the ARDC/BGH correlation comes out at 0.65, strong. The relationship has been stable: the 1-year correlation (0.66) sits close to the 3-year figure. The 5-year figure is 0.71, and annualized covariance runs at 105.8 %².
Few assets follow ARDC as closely as BGH, which ranks #3 of 12 tracked partners. Twelve-month performance is nearly a tie, at -6.2% for ARDC and -2.8% for BGH.
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.
ARDC vs BGH: side by side
| ARDC (Ares Dynamic Credit Allocation Fund, Inc.) | BGH (Barings Global Short Duration High Yield Fund) | |
|---|---|---|
| 1-year return | -6.2% | -2.8% |
| 5-year return | +23.0% | +37.9% |
| Volatility (ann.) | 12.3% | 13.2% |
| Beta vs S&P 500 | 0.49 | 0.54 |
| Max drawdown (3Y) | -19.8% | -16.9% |
| Market cap | $0.3B | – |
| P/E (trailing) | 12.8 | 14.2 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARDC | BGH |
|---|---|---|
| 2022 | -22.2% | -19.9% |
| 2023 | +32.4% | +18.2% |
| 2024 | +21.1% | +27.3% |
| 2025 | -3.1% | +8.5% |
| 2026 | -0.8% | +1.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARDC and BGH good diversifiers for each other?
Only partially. A correlation of 0.65 means ARDC and BGH 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 ARDC and BGH?
The ARDC/BGH correlation stands at 0.65 on a 3-year window (1 year: 0.66, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is BGH a good diversifier for ARDC?
Only partially. A correlation of 0.65 means ARDC and BGH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.65 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ardc-vs-bgh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ardc-vs-bgh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ARDC correlations · BGH correlations
