CSWC vs. ARCC
CSWC (Capital Southwest Corporation) 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, CSWC returned 17.30%/yr vs 13.20%/yr for ARCC. At a 0.42 correlation, their price movements are largely independent.
Performance
CSWC vs. ARCC - Performance Comparison
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Returns By Period
In the year-to-date period, CSWC achieves a 11.14% return, which is significantly higher than ARCC's -2.20% return. Over the past 10 years, CSWC has outperformed ARCC with an annualized return of 17.30%, while ARCC has yielded a comparatively lower 13.20% annualized return.
CSWC
- 1D
- 0.51%
- 1M
- -0.13%
- YTD
- 11.14%
- 6M
- 11.81%
- 1Y
- 26.38%
- 3Y*
- 18.73%
- 5Y*
- 8.54%
- 10Y*
- 17.30%
ARCC
- 1D
- 1.00%
- 1M
- 1.90%
- YTD
- -2.20%
- 6M
- -2.87%
- 1Y
- -3.87%
- 3Y*
- 10.27%
- 5Y*
- 9.04%
- 10Y*
- 13.20%
CSWC vs. ARCC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CSWC Capital Southwest Corporation | 11.14% | 14.28% | 2.14% | 56.10% | -24.63% | 57.40% | -1.56% | 22.80% | 29.52% | 9.99% |
ARCC Ares Capital Corporation | -2.20% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 0.86% | 31.30% | 8.81% | 4.50% |
Correlation
The correlation between CSWC and ARCC is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.71 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.62 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.49 |
Correlation (All Time) Calculated using the full available price history since Oct 6, 2004 | 0.42 |
Over the past year, CSWC and ARCC have become more correlated (0.71) than their long-term average of 0.42, meaning their price movements have been converging.
Fundamentals
CSWC:
$1.47B
ARCC:
$13.83B
CSWC:
$1.76
ARCC:
$1.63
CSWC:
13.38
ARCC:
11.81
CSWC:
1.01
ARCC:
1.77
CSWC:
6.81
ARCC:
5.16
CSWC:
1.45
ARCC:
0.98
CSWC:
$222.04M
ARCC:
$2.63B
CSWC:
$172.70M
ARCC:
$1.86B
CSWC:
$142.78M
ARCC:
$2.05B
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Return for Risk
CSWC vs. ARCC — Risk / Return Rank
CSWC
ARCC
CSWC vs. ARCC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Capital Southwest Corporation (CSWC) 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.
| CSWC | ARCC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.60 | ||
| Sortino ratioReturn per unit of downside risk | +2.22 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 0.97 | +0.27 |
| Calmar ratioReturn relative to maximum drawdown | 1.59 | -0.26 | +1.86 |
| Martin ratioReturn relative to average drawdown | 5.13 | -0.47 | +5.60 |
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Drawdowns
CSWC vs. ARCC - Drawdown Comparison
The maximum CSWC drawdown since its inception was -68.33%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for CSWC and ARCC.
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Drawdown Indicators
| CSWC | ARCC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -68.33% | -79.36% | +11.03% |
Max Drawdown (1Y)Largest decline over 1 year | -15.75% | -19.35% | +3.60% |
Max Drawdown (3Y)Largest decline over 3 years | -27.74% | -19.35% | -8.39% |
Max Drawdown (5Y)Largest decline over 5 years | -33.66% | -21.76% | -11.90% |
Max Drawdown (10Y)Largest decline over 10 years | -61.15% | -56.77% | -4.38% |
Current DrawdownCurrent decline from peak | -2.34% | -10.98% | +8.64% |
Average DrawdownAverage peak-to-trough decline | -18.35% | -9.10% | -9.25% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.89% | 10.68% | -5.79% |
Volatility
CSWC vs. ARCC - Volatility Comparison
Capital Southwest Corporation (CSWC) has a higher volatility of 5.25% compared to Ares Capital Corporation (ARCC) at 3.72%. This indicates that CSWC's price experiences larger fluctuations and is considered to be riskier 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
| CSWC | ARCC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.25% | 3.72% | +1.53% |
Volatility (6M)Calculated over the trailing 6-month period | 13.93% | 14.83% | -0.90% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.98% | 18.48% | +0.50% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.65% | 19.96% | +2.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.40% | 25.58% | +1.82% |
Dividends
CSWC vs. ARCC - Dividend Comparison
CSWC's dividend yield for the trailing twelve months is around 12.52%, more than ARCC's 9.97% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 7.48% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
CSWC Capital Southwest Corporation | 9.80% | 11.56% | 11.59% | 10.21% | 12.46% | 10.13% | 11.49% | 13.07% | 10.77% | 7.01% | 2.35% | 216.86% |
Financials
CSWC vs. ARCC - Financials Comparison
This section allows you to compare key financial metrics between Capital Southwest Corporation 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
CSWC vs. ARCC - Profitability Comparison
CSWC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Capital Southwest Corporation reported a gross profit of 54.00M and revenue of 54.00M. Therefore, the gross margin over that period was 100.0%.
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%.
CSWC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Capital Southwest Corporation reported an operating income of 44.66M and revenue of 54.00M, resulting in an operating margin of 82.7%.
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%.
CSWC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Capital Southwest Corporation reported a net income of 27.48M and revenue of 54.00M, resulting in a net margin of 50.9%.
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
CSWC and ARCC have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CSWC has higher volatility (5.25%) compared to ARCC (3.72%). In terms of maximum drawdown, CSWC dropped -68.33% vs ARCC's -79.36%.
CSWC currently has the higher Sharpe Ratio (1.33 vs -0.27), 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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