ARDC vs SPY: Correlation
How closely do Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.57, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARDC and SPY?
Across a 3-year window, the weekly returns of ARDC and SPY correlate at 0.57, moderate. Recent behaviour matches the longer record: 0.66 over 1 year against 0.57 over 3. Stretching to 5 years gives 0.58, with an annualized covariance of 101.8 %².
By 3-year correlation, SPY places #7 of the 12 assets tracked against ARDC. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 26.8 percentage points (-6.2% for ARDC against +20.6% for SPY).
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 SPY: side by side
| ARDC (Ares Dynamic Credit Allocation Fund, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -6.2% | +20.6% |
| 5-year return | +23.0% | +82.4% |
| Volatility (ann.) | 12.3% | 14.5% |
| Beta vs S&P 500 | 0.49 | 1.00 |
| Max drawdown (3Y) | -19.8% | -18.8% |
| Market cap | $0.3B | – |
| P/E (trailing) | 12.8 | – |
| Dividend yield | 0.00% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | ARDC | SPY |
|---|---|---|
| 2022 | -22.2% | -18.2% |
| 2023 | +32.4% | +26.2% |
| 2024 | +21.1% | +24.9% |
| 2025 | -3.1% | +17.7% |
| 2026 | -0.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARDC and SPY good diversifiers for each other?
Only partially. A correlation of 0.57 means ARDC and SPY 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 SPY?
The ARDC/SPY correlation stands at 0.57 on a 3-year window (1 year: 0.66, 5 years: 0.58), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for ARDC?
Only partially. A correlation of 0.57 means ARDC and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.57 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.
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Related comparisons
Hubs: ARDC correlations · SPY correlations
