ARDC vs VXX: Correlation
How closely do Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) trade together? Their weekly returns over three years give a correlation of -0.51, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARDC and VXX?
On 3 years of weekly data the ARDC/VXX correlation comes out at -0.51, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.65 versus -0.51 over 3 years. The 5-year figure is -0.45, and annualized covariance runs at -382.9 %².
Among the 12 assets we track against ARDC, VXX sits near the bottom by co-movement, at rank #12. Their recent paths diverged sharply: over the last 12 months ARDC outperformed by 43.5 percentage points (-6.2% for ARDC against -49.7% for VXX). Risk is not evenly split, since VXX carries 5.0 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 VXX: side by side
| ARDC (Ares Dynamic Credit Allocation Fund, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | -6.2% | -49.7% |
| 5-year return | +23.0% | -95.6% |
| Volatility (ann.) | 12.3% | 60.9% |
| Beta vs S&P 500 | 0.49 | -3.31 |
| Max drawdown (3Y) | -19.8% | -83.3% |
| Market cap | $0.3B | – |
| P/E (trailing) | 12.8 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARDC | VXX |
|---|---|---|
| 2022 | -22.2% | -23.8% |
| 2023 | +32.4% | -72.5% |
| 2024 | +21.1% | -26.2% |
| 2025 | -3.1% | -42.2% |
| 2026 | -0.8% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARDC and VXX good diversifiers for each other?
By historical standards, yes. A correlation of -0.51 means the two rarely move for the same reasons.
FAQ
What is the correlation between ARDC and VXX?
The ARDC/VXX correlation stands at -0.51 on a 3-year window (1 year: -0.65, 5 years: -0.45), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for ARDC?
By historical standards, yes. A correlation of -0.51 means the two rarely move for the same reasons.
What does a correlation of -0.51 mean?
A reading of -0.51 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/ardc-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ardc-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ARDC correlations · VXX correlations
