Ares Capital Correlations

ARCC Stock

USD 23.21 0.04 0.17%

The current 90-days correlation between Ares Capital and Prospect Capital is 0.76 (i.e., Poor diversification). The correlation of Ares Capital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Ares Capital Correlation With Market

Very weak diversification

The correlation between Ares Capital and DJI is 0.59 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ares Capital and DJI in the same portfolio, assuming nothing else is changed.

Build AI portfolio with Ares Stock

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ares Capital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

For information on how to trade Ares Stock refer to our How to Trade Ares Stock guide.

Moving together with Ares Stock

0.94	GS	Goldman Sachs Group	Pair Corr
0.91	AXP	American Express	Pair Corr
0.93	COF	Capital One Financial Earnings Call Tomorrow	Pair Corr
0.94	SCM	Stellus Capital Inve	Pair Corr
0.81	GAIN	Gladstone Investment	Pair Corr
0.98	GLAD	Gladstone Capital	Pair Corr
0.94	HTGC	Hercules Capital	Pair Corr
0.94	MAIN	Main Street Capital	Pair Corr
0.74	OPFI	OppFi Inc	Pair Corr
0.96	PFLT	PennantPark Floating Rate	Pair Corr
0.85	PYPL	PayPal Holdings Aggressive Push	Pair Corr
0.93	ALLY	Ally Financial	Pair Corr
0.95	TPVG	Triplepoint Venture	Pair Corr
0.98	TSLX	Sixth Street Specialty	Pair Corr
0.93	CSWC	Capital Southwest	Pair Corr
0.96	C	Citigroup Aggressive Push	Pair Corr
0.89	L	Loews Corp Earnings Call This Week	Pair Corr
0.92	DHIL	Diamond Hill Investment	Pair Corr
0.7	AB	AllianceBernstein Earnings Call This Week	Pair Corr
0.78	AC	Associated Capital	Pair Corr
0.94	AX	Axos Financial Earnings Call This Week	Pair Corr
0.93	BK	Bank of New York	Pair Corr
0.95	BN	Brookfield Corp	Pair Corr
0.89	BX	Blackstone Group Normal Trading	Pair Corr
0.79	BY	Byline Bancorp Earnings Call This Week	Pair Corr
0.97	CG	Carlyle Group Earnings Call This Week	Pair Corr
0.95	CM	Canadian Imperial Bank	Pair Corr
0.92	DB	Deutsche Bank AG Earnings Call This Week	Pair Corr
0.76	HG	Hamilton Insurance Group,	Pair Corr
0.92	IX	Orix Corp Ads	Pair Corr

Moving against Ares Stock

0.37	PSEC	Prospect Capital	Pair Corr
0.68	FG	FG Annuities Life	Pair Corr
0.58	EG	Everest Group	Pair Corr
0.4	LX	Lexinfintech Holdings	Pair Corr

Related Correlations Analysis

	TPVG	TSLX	MAIN	CSWC	GAIN	PFLT	PSEC	HTGC	GLAD	HRZN
TPVG		0.98	0.91	0.87	0.85	0.91	-0.54	0.89	0.94	-0.05	TPVG
TSLX	0.98		0.94	0.92	0.86	0.93	-0.53	0.91	0.96	-0.07	TSLX
MAIN	0.91	0.94		0.96	0.7	0.92	-0.45	0.96	0.95	0.19	MAIN
CSWC	0.87	0.92	0.96		0.66	0.92	-0.32	0.95	0.94	0.12	CSWC
GAIN	0.85	0.86	0.7	0.66		0.75	-0.59	0.66	0.8	-0.25	GAIN
PFLT	0.91	0.93	0.92	0.92	0.75		-0.32	0.94	0.96	0.05	PFLT
PSEC	-0.54	-0.53	-0.45	-0.32	-0.59	-0.32		-0.29	-0.34	0.3	PSEC
HTGC	0.89	0.91	0.96	0.95	0.66	0.94	-0.29		0.94	0.22	HTGC
GLAD	0.94	0.96	0.95	0.94	0.8	0.96	-0.34	0.94		0.08	GLAD
HRZN	-0.05	-0.07	0.19	0.12	-0.25	0.05	0.3	0.22	0.08		HRZN
	TPVG	TSLX	MAIN	CSWC	GAIN	PFLT	PSEC	HTGC	GLAD	HRZN

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

TSLX	+ 0.98	TPVG
GLAD	+ 0.96	TSLX
CSWC	+ 0.96	MAIN
HTGC	+ 0.96	MAIN
GLAD	+ 0.96	PFLT
GLAD	+ 0.95	MAIN

High negative correlations

PSEC	- 0.59	GAIN
PSEC	- 0.54	TPVG
PSEC	- 0.53	TSLX
PSEC	- 0.45	MAIN
GLAD	- 0.34	PSEC
PSEC	- 0.32	PFLT

Risk-Adjusted Indicators

There is a big difference between Ares Stock performing well and Ares Capital Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Ares Capital's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
TPVG	1.54	0.24	0.13	0.40	1.52	(1.74)	3.59	(2.70)	11.08
TSLX	0.78	0.29	0.19	0.70	0.63	(0.91)	1.74	(1.66)	4.63
MAIN	0.94	0.22	0.17	0.44	0.78	(1.11)	2.00	(1.73)	4.83
CSWC	0.94	0.25	0.19	0.48	0.76	(1.09)	2.32	(1.42)	7.38
GAIN	0.83	0.09	0.02	0.37	0.70	(0.96)	1.92	(1.57)	4.72
PFLT	0.85	0.14	0.07	0.37	0.92	(0.95)	1.89	(1.60)	5.26
PSEC	1.26	(0.15)	0.00	(0.02)	0.00	0.00	2.40	(2.42)	8.61
HTGC	0.88	0.15	0.08	0.40	0.78	(1.04)	1.84	(1.35)	5.60
GLAD	0.88	0.18	0.12	0.37	0.92	(1.01)	2.07	(1.59)	5.93
HRZN	1.41	0.02	(0.02)	0.18	3.57	(1.26)	2.99	(2.15)	20.58

Ares Capital Corporate Management

Michael Dieber	Partner	Profile
Chrissy Svejnar	Managing Group	Profile
Mark Affolter	Portfolio Partner	Profile
John Gerber	Head Estate	Profile
Paul Cho	Chief Officer	Profile

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