ARDC vs VLT: Correlation
Measured on weekly returns over the past three years, Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and Invesco High Income Trust II (VLT) carry a correlation of 0.65, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARDC and VLT?
On 3 years of weekly data the ARDC/VLT correlation comes out at 0.65, strong. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. The 5-year figure is 0.70, and annualized covariance runs at 79.8 %².
By 3-year correlation, VLT places #4 of the 12 assets tracked against ARDC. Their 12-month results are close: -6.2% for ARDC against -1.3% for VLT.
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 VLT: side by side
| ARDC (Ares Dynamic Credit Allocation Fund, Inc.) | VLT (Invesco High Income Trust II) | |
|---|---|---|
| 1-year return | -6.2% | -1.3% |
| 5-year return | +23.0% | +12.4% |
| Volatility (ann.) | 12.3% | 10.0% |
| Beta vs S&P 500 | 0.49 | 0.47 |
| Max drawdown (3Y) | -19.8% | -13.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 12.8 | 13.9 |
| Dividend yield | 0.00% | 11.52% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARDC | VLT |
|---|---|---|
| 2022 | -22.2% | -20.9% |
| 2023 | +32.4% | +13.1% |
| 2024 | +21.1% | +17.3% |
| 2025 | -3.1% | +13.2% |
| 2026 | -0.8% | -4.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARDC and VLT good diversifiers for each other?
To a limited degree. At 0.65 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ARDC and VLT?
As of 2026-08-27, the correlation of weekly returns between ARDC and VLT is 0.65 over 3 years, 0.58 over 1 year and 0.70 over 5 years.
Is VLT a good diversifier for ARDC?
To a limited degree. At 0.65 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
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-vlt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ardc-vs-vlt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARDC correlations · VLT correlations
