ARB vs. ARCC
ARB (AltShares Merger Arbitrage ETF) is Event Driven 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 4.05%/yr vs 8.51%/yr for ARCC. Their 0.23 correlation means their historical movements had little consistent relationship.
Performance
ARB vs. ARCC - Performance Comparison
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Returns By Period
In the year-to-date period, ARB achieves a 1.65% return, which is significantly higher than ARCC's -2.56% return.
ARB
- 1D
- -0.41%
- 1M
- -0.02%
- 6M
- 1.67%
- YTD
- 1.65%
- 1Y
- 3.15%
- 3Y*
- 5.44%
- 5Y*
- 4.05%
- 10Y*
- —
- ALL TIME*
- 4.05%
ARCC
- 1D
- -1.73%
- 1M
- 1.08%
- 6M
- -2.37%
- YTD
- -2.56%
- 1Y
- -8.52%
- 3Y*
- 8.26%
- 5Y*
- 8.51%
- 10Y*
- 12.29%
- ALL TIME*
- 11.96%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $346.94K | $548.34K | $441.81K | |
| $85.91M | $88.64M | $94.44M |
ARB vs. ARCC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
ARB AltShares Merger Arbitrage ETF | 1.65% | 6.05% | 4.07% | 3.85% | 2.67% | 3.16% | 3.77% |
ARCC Ares Capital Corporation | -2.56% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 38.51% |
Correlation
The correlation between ARB and ARCC is 0.24, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.24 |
Correlation (3Y) Balances recent behavior with more history. | 0.21 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.25 |
Correlation (All Time) Calculated using the full available price history since May 7, 2020 | 0.23 |
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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 | +1.38 | ||
| Sortino ratioReturn per unit of downside risk | +1.93 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 0.94 | +0.25 |
| Calmar ratioReturn relative to maximum drawdown | 2.05 | -0.49 | +2.54 |
| Martin ratioReturn relative to average drawdown | 8.70 | -0.90 | +9.60 |
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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 | -1.54% | -17.35% | +15.81% |
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 | -1.04% | -11.31% | +10.27% |
Average DrawdownAverage peak-to-trough decline | -0.93% | -9.12% | +8.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.36% | 9.48% | -9.12% |
Volatility
ARB vs. ARCC - Volatility Comparison
The current volatility for AltShares Merger Arbitrage ETF (ARB) is 1.75%, while Ares Capital Corporation (ARCC) has a volatility of 4.32%. 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 | 1.75% | 4.32% | -2.57% |
Volatility (6M)Calculated over the trailing 6-month period | 3.03% | 14.77% | -11.74% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.42% | 18.87% | -15.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.48% | 19.97% | -15.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.42% | 25.58% | -21.16% |
Dividends
ARB vs. ARCC - Dividend Comparison
ARB's dividend yield for the trailing twelve months is around 0.43%, less than ARCC's 10.26% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARB AltShares Merger Arbitrage ETF | 0.43% | 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 | 10.26% | 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 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ARCC has higher volatility (4.32%) compared to ARB (1.75%). In terms of maximum drawdown, ARB dropped -5.60% vs ARCC's -79.36%.
ARB currently has the higher Sharpe Ratio (0.93 vs -0.45), 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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