ARB vs. ARCC
ARB (AltShares Merger Arbitrage ETF) is Hedge Fund fund tracking the Water Island Merger Arbitrage USD Hedged Index, while ARCC (Ares Capital Corporation) is a stock. Over the past 5 years, ARB returned 3.93%/yr vs 8.79%/yr for ARCC. At a 0.23 correlation, their price movements are largely independent.
Performance
ARB vs. ARCC - Performance Comparison
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Returns By Period
In the year-to-date period, ARB achieves a 1.75% return, which is significantly higher than ARCC's -6.10% return.
ARB
- 1D
- 0.20%
- 1M
- 0.13%
- YTD
- 1.75%
- 6M
- 2.17%
- 1Y
- 4.72%
- 3Y*
- 5.95%
- 5Y*
- 3.93%
- 10Y*
- —
ARCC
- 1D
- -0.39%
- 1M
- -0.43%
- YTD
- -6.10%
- 6M
- -5.68%
- 1Y
- -7.62%
- 3Y*
- 8.56%
- 5Y*
- 8.79%
- 10Y*
- 12.65%
ARB vs. ARCC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
ARB AltShares Merger Arbitrage ETF | 1.75% | 6.05% | 4.07% | 3.85% | 2.67% | 3.16% | 3.77% |
ARCC Ares Capital Corporation | -6.10% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 38.51% |
Correlation
The correlation between ARB and ARCC is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.23 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (All Time) Calculated using the full available price history since May 7, 2020 | 0.24 |
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Return for Risk
ARB vs. ARCC — Risk / Return Rank
ARB
ARCC
ARB vs. ARCC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for AltShares Merger Arbitrage ETF (ARB) and Ares Capital Corporation (ARCC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ARB | ARCC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.94 | ||
| Sortino ratioReturn per unit of downside risk | +2.87 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 0.95 | +0.36 |
| Calmar ratioReturn relative to maximum drawdown | 4.41 | -0.40 | +4.81 |
| Martin ratioReturn relative to average drawdown | 17.04 | -0.71 | +17.75 |
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Drawdowns
ARB vs. ARCC - Drawdown Comparison
The maximum ARB drawdown since its inception was -5.60%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for ARB and ARCC.
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Drawdown Indicators
| ARB | ARCC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.60% | -79.36% | +73.76% |
Max Drawdown (1Y)Largest decline over 1 year | -1.07% | -19.35% | +18.28% |
Max Drawdown (3Y)Largest decline over 3 years | -2.13% | -19.35% | +17.22% |
Max Drawdown (5Y)Largest decline over 5 years | -5.60% | -21.76% | +16.16% |
Max Drawdown (10Y)Largest decline over 10 years | — | -56.77% | — |
Current DrawdownCurrent decline from peak | -0.74% | -14.53% | +13.79% |
Average DrawdownAverage peak-to-trough decline | -0.94% | -9.11% | +8.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.28% | 10.80% | -10.52% |
Volatility
ARB vs. ARCC - Volatility Comparison
The current volatility for AltShares Merger Arbitrage ETF (ARB) is 1.22%, while Ares Capital Corporation (ARCC) has a volatility of 4.59%. This indicates that ARB experiences smaller price fluctuations and is considered to be less risky than ARCC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARB | ARCC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.22% | 4.59% | -3.37% |
Volatility (6M)Calculated over the trailing 6-month period | 2.62% | 15.08% | -12.46% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.10% | 18.64% | -15.54% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.43% | 19.95% | -15.52% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.41% | 25.59% | -21.18% |
Dividends
ARB vs. ARCC - Dividend Comparison
ARB's dividend yield for the trailing twelve months is around 0.42%, less than ARCC's 10.65% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARB AltShares Merger Arbitrage ETF | 0.42% | 0.43% | 1.12% | 0.00% | 4.18% | 0.00% | 2.87% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
ARCC Ares Capital Corporation | 10.65% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
Frequently Asked Questions
ARB and ARCC have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ARCC has higher volatility (4.59%) compared to ARB (1.22%). In terms of maximum drawdown, ARB dropped -5.60% vs ARCC's -79.36%.
ARB currently has the higher Sharpe Ratio (1.53 vs -0.41), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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