ARDC vs. ARCC
ARDC (Ares Dynamic Credit Allocation Fund, Inc.) and ARCC (Ares Capital Corporation) are both stocks. Both operate in the Asset Management industry within the Financial Services sector. Over the past 10 years, ARDC returned 8.46%/yr vs 12.43%/yr for ARCC. At a 0.31 correlation, their price movements are largely independent.
Performance
ARDC vs. ARCC - Performance Comparison
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Returns By Period
In the year-to-date period, ARDC achieves a -0.27% return, which is significantly higher than ARCC's -7.09% return. Over the past 10 years, ARDC has underperformed ARCC with an annualized return of 8.46%, while ARCC has yielded a comparatively higher 12.43% annualized return.
ARDC
- 1D
- -0.61%
- 1M
- 0.49%
- YTD
- -0.27%
- 6M
- 0.48%
- 1Y
- -2.07%
- 3Y*
- 12.07%
- 5Y*
- 4.72%
- 10Y*
- 8.46%
ARCC
- 1D
- -1.05%
- 1M
- -1.58%
- YTD
- -7.09%
- 6M
- -5.60%
- 1Y
- -8.51%
- 3Y*
- 9.49%
- 5Y*
- 8.23%
- 10Y*
- 12.43%
ARDC vs. ARCC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ARDC Ares Dynamic Credit Allocation Fund, Inc. | -0.27% | -3.10% | 21.05% | 32.35% | -22.21% | 23.12% | 2.56% | 21.26% | -8.80% | 17.63% |
ARCC Ares Capital Corporation | -7.09% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 0.86% | 31.30% | 8.81% | 4.50% |
Correlation
The correlation between ARDC and ARCC is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.29 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.38 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.33 |
Correlation (All Time) Calculated using the full available price history since Nov 28, 2012 | 0.31 |
Fundamentals
ARDC:
$301.49M
ARCC:
$12.81B
ARDC:
$2.52
ARCC:
$1.63
ARDC:
4.99
ARCC:
10.94
ARDC:
0.05
ARCC:
1.64
ARDC:
3.43
ARCC:
4.78
ARDC:
0.88
ARCC:
0.91
ARDC:
$87.73M
ARCC:
$2.63B
ARDC:
$56.87M
ARCC:
$1.86B
ARDC:
$82.14M
ARCC:
$2.05B
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Return for Risk
ARDC vs. ARCC — Risk / Return Rank
ARDC
ARCC
ARDC vs. ARCC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Dynamic Credit Allocation Fund, Inc. (ARDC) 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.
| ARDC | ARCC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.24 | ||
| Sortino ratioReturn per unit of downside risk | +0.28 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 0.94 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | -0.13 | -0.44 | +0.31 |
| Martin ratioReturn relative to average drawdown | -0.27 | -0.79 | +0.51 |
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Drawdowns
ARDC vs. ARCC - Drawdown Comparison
The maximum ARDC drawdown since its inception was -45.40%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for ARDC and ARCC.
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Drawdown Indicators
| ARDC | ARCC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -45.40% | -79.36% | +33.96% |
Max Drawdown (1Y)Largest decline over 1 year | -15.57% | -19.35% | +3.78% |
Max Drawdown (3Y)Largest decline over 3 years | -19.78% | -19.35% | -0.43% |
Max Drawdown (5Y)Largest decline over 5 years | -26.48% | -21.76% | -4.72% |
Max Drawdown (10Y)Largest decline over 10 years | -45.40% | -56.77% | +11.37% |
Current DrawdownCurrent decline from peak | -7.86% | -15.44% | +7.58% |
Average DrawdownAverage peak-to-trough decline | -6.65% | -9.11% | +2.46% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.60% | 10.85% | -3.25% |
Volatility
ARDC vs. ARCC - Volatility Comparison
The current volatility for Ares Dynamic Credit Allocation Fund, Inc. (ARDC) is 2.46%, while Ares Capital Corporation (ARCC) has a volatility of 4.64%. This indicates that ARDC 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
| ARDC | ARCC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.46% | 4.64% | -2.18% |
Volatility (6M)Calculated over the trailing 6-month period | 7.27% | 15.11% | -7.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.59% | 18.68% | -9.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.80% | 19.95% | -6.15% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.88% | 25.60% | -8.72% |
Dividends
ARDC vs. ARCC - Dividend Comparison
ARDC's dividend yield for the trailing twelve months is around 10.73%, which matches ARCC's 10.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 10.76% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
ARDC Ares Dynamic Credit Allocation Fund, Inc. | 10.73% | 10.19% | 9.33% | 9.85% | 10.31% | 7.16% | 8.40% | 8.40% | 9.35% | 7.58% | 8.45% | 10.51% |
Financials
ARDC vs. ARCC - Financials Comparison
This section allows you to compare key financial metrics between Ares Dynamic Credit Allocation Fund, Inc. and Ares Capital Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
ARDC vs. ARCC - Profitability Comparison
ARDC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Ares Dynamic Credit Allocation Fund, Inc. reported a gross profit of 21.10M and revenue of 24.48M. Therefore, the gross margin over that period was 86.2%.
ARCC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Ares Capital Corporation reported a gross profit of 550.00M and revenue of 763.00M. Therefore, the gross margin over that period was 72.1%.
ARDC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Ares Dynamic Credit Allocation Fund, Inc. reported an operating income of 15.45M and revenue of 24.48M, resulting in an operating margin of 63.1%.
ARCC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Ares Capital Corporation reported an operating income of 404.00M and revenue of 763.00M, resulting in an operating margin of 53.0%.
ARDC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Ares Dynamic Credit Allocation Fund, Inc. reported a net income of 10.23M and revenue of 24.48M, resulting in a net margin of 41.8%.
ARCC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Ares Capital Corporation reported a net income of 92.00M and revenue of 763.00M, resulting in a net margin of 12.1%.
Frequently Asked Questions
ARDC and ARCC have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ARCC has higher volatility (4.64%) compared to ARDC (2.46%). In terms of maximum drawdown, ARDC dropped -45.40% vs ARCC's -79.36%.
ARDC currently has the higher Sharpe Ratio (-0.22 vs -0.46), 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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