ARDC vs VXZ: Correlation
Measured on weekly returns over the past three years, Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.48, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARDC and VXZ?
Over the past 3 years, ARDC and VXZ moved with a correlation of -0.48, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.55) sits close to the 3-year figure. Over 5 years the correlation is -0.48, and the annualized covariance of weekly returns is -151.4 %².
Out of 12 assets tracked against ARDC, VXZ lands near the bottom at #11. The trailing year gives ARDC the advantage: -6.2% versus -16.1%, a 9.9-point spread. Risk is not evenly split, since VXZ carries 2.1 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 VXZ: side by side
| ARDC (Ares Dynamic Credit Allocation Fund, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -6.2% | -16.1% |
| 5-year return | +23.0% | -53.1% |
| Volatility (ann.) | 12.3% | 25.6% |
| Beta vs S&P 500 | 0.49 | -1.31 |
| Max drawdown (3Y) | -19.8% | -36.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 12.8 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARDC | VXZ |
|---|---|---|
| 2022 | -22.2% | +0.5% |
| 2023 | +32.4% | -44.0% |
| 2024 | +21.1% | -12.7% |
| 2025 | -3.1% | +5.7% |
| 2026 | -0.8% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARDC and VXZ good diversifiers for each other?
Yes: at -0.48, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between ARDC and VXZ?
Using weekly returns as of 2026-08-27: -0.48 over 3 years, with -0.55 over the last year and -0.48 over 5 years.
Is VXZ a good diversifier for ARDC?
Yes: at -0.48, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.48 mean?
On the −1 to +1 scale, -0.48 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ardc-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ardc-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ARDC correlations · VXZ correlations
