ARDC vs XFLT: Correlation
Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and XAI Floating Rate & Alternative Income Trust (XFLT) show a moderate relationship: their 3-year correlation of weekly returns is 0.49.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARDC and XFLT?
On 3 years of weekly data the ARDC/XFLT correlation comes out at 0.49, moderate. Recent behaviour matches the longer record: 0.54 over 1 year against 0.49 over 3. The 5-year figure is 0.52, and annualized covariance runs at 105.3 %².
XFLT is close to the least connected end of ARDC's tracked universe, ranking #9 of 12. Over the last 12 months ARDC came out ahead by 10.3 percentage points (-6.2% against -16.5%).
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 XFLT: side by side
| ARDC (Ares Dynamic Credit Allocation Fund, Inc.) | XFLT (XAI Floating Rate & Alternative Income Trust) | |
|---|---|---|
| 1-year return | -6.2% | -16.5% |
| 5-year return | +23.0% | -11.0% |
| Volatility (ann.) | 12.3% | 17.7% |
| Beta vs S&P 500 | 0.49 | 0.36 |
| Max drawdown (3Y) | -19.8% | -47.0% |
| Market cap | $0.3B | $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 | XFLT |
|---|---|---|
| 2022 | -22.2% | -20.3% |
| 2023 | +32.4% | +30.4% |
| 2024 | +21.1% | +7.4% |
| 2025 | -3.1% | -15.3% |
| 2026 | -0.8% | -9.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARDC and XFLT good diversifiers for each other?
Reasonably. At 0.49, ARDC and XFLT keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ARDC and XFLT?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.54 over the last year and 0.52 over 5 years.
Is XFLT a good diversifier for ARDC?
Reasonably. At 0.49, ARDC and XFLT keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.49 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-xflt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ardc-vs-xflt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARDC correlations · XFLT correlations
