ARDC vs FNGD: Correlation
Measured on weekly returns over the past three years, Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) carry a correlation of -0.42, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARDC and FNGD?
On 3 years of weekly data the ARDC/FNGD correlation comes out at -0.42, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.52 versus -0.42 over 3 years. The 5-year figure is -0.42, and annualized covariance runs at -395.2 %².
FNGD is close to the least connected end of ARDC's tracked universe, ranking #10 of 12. Correlation aside, the last 12 months split them widely, with ARDC ahead by 49.5 points (-6.2% versus -55.7%). Risk is not evenly split, since FNGD carries 6.2 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.
ARDC vs FNGD: side by side
| ARDC (Ares Dynamic Credit Allocation Fund, Inc.) | FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | |
|---|---|---|
| 1-year return | -6.2% | -55.7% |
| 5-year return | +23.0% | -99.4% |
| Volatility (ann.) | 12.3% | 75.7% |
| Beta vs S&P 500 | 0.49 | -4.54 |
| Max drawdown (3Y) | -19.8% | -97.6% |
| Market cap | $0.3B | – |
| P/E (trailing) | 12.8 | 20.6 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARDC | FNGD |
|---|---|---|
| 2022 | -22.2% | +52.2% |
| 2023 | +32.4% | -90.1% |
| 2024 | +21.1% | -76.6% |
| 2025 | -3.1% | -61.4% |
| 2026 | -0.8% | -49.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARDC and FNGD good diversifiers for each other?
By historical standards, yes. A correlation of -0.42 means the two rarely move for the same reasons.
FAQ
What is the correlation between ARDC and FNGD?
Using weekly returns as of 2026-08-27: -0.42 over 3 years, with -0.52 over the last year and -0.42 over 5 years.
Is FNGD a good diversifier for ARDC?
By historical standards, yes. A correlation of -0.42 means the two rarely move for the same reasons.
What does a correlation of -0.42 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-fngd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ardc-vs-fngd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ARDC correlations · FNGD correlations
