NREF vs. ARCC
NREF (NexPoint Real Estate Finance, Inc.) and ARCC (Ares Capital Corporation) are both stocks. NREF operates in REIT - Mortgage (Real Estate), while ARCC operates in Asset Management (Financial Services). Over the past 5 years, NREF returned 6.73%/yr vs 8.64%/yr for ARCC. At a 0.35 correlation, their price movements are largely independent.
Performance
NREF vs. ARCC - Performance Comparison
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Returns By Period
In the year-to-date period, NREF achieves a 14.18% return, which is significantly higher than ARCC's -5.14% return.
NREF
- 1D
- -1.65%
- 1M
- 4.44%
- YTD
- 14.18%
- 6M
- 12.45%
- 1Y
- 18.29%
- 3Y*
- 18.35%
- 5Y*
- 6.73%
- 10Y*
- —
ARCC
- 1D
- -1.53%
- 1M
- -2.61%
- YTD
- -5.14%
- 6M
- -5.66%
- 1Y
- -6.58%
- 3Y*
- 9.07%
- 5Y*
- 8.64%
- 10Y*
- 12.56%
NREF vs. ARCC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
NREF NexPoint Real Estate Finance, Inc. | 14.18% | 2.28% | 13.51% | 17.36% | -8.90% | 27.81% | -2.81% |
ARCC Ares Capital Corporation | -5.14% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | -2.18% |
Correlation
The correlation between NREF and ARCC is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.40 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.35 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Feb 10, 2020 | 0.35 |
Fundamentals
NREF:
$798.08M
ARCC:
$13.41B
NREF:
$2.26
ARCC:
$1.63
NREF:
6.87
ARCC:
11.46
NREF:
0.06
ARCC:
1.72
NREF:
4.58
ARCC:
5.01
NREF:
2.05
ARCC:
0.95
NREF:
$155.54M
ARCC:
$2.63B
NREF:
$132.51M
ARCC:
$1.86B
NREF:
$152.30M
ARCC:
$2.05B
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Return for Risk
NREF vs. ARCC — Risk / Return Rank
NREF
ARCC
NREF vs. ARCC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for NexPoint Real Estate Finance, Inc. (NREF) 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.
| NREF | ARCC | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 0.71 | -0.36 | +1.07 |
Sortino ratioReturn per unit of downside risk | 1.08 | -0.38 | +1.46 |
Omega ratioGain probability vs. loss probability | 1.14 | 0.95 | +0.18 |
Calmar ratioReturn relative to maximum drawdown | 1.42 | -0.34 | +1.76 |
Martin ratioReturn relative to average drawdown | 3.01 | -0.63 | +3.64 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| NREF | ARCC | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.71 | -0.36 | +1.07 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.20 | 0.43 | -0.23 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.49 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.21 | 0.37 | -0.17 |
Drawdowns
NREF vs. ARCC - Drawdown Comparison
The maximum NREF drawdown since its inception was -66.09%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for NREF and ARCC.
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Drawdown Indicators
| NREF | ARCC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.09% | -79.36% | +13.27% |
Max Drawdown (1Y)Largest decline over 1 year | -12.92% | -19.35% | +6.43% |
Max Drawdown (3Y)Largest decline over 3 years | -24.00% | -19.35% | -4.65% |
Max Drawdown (5Y)Largest decline over 5 years | -44.78% | -21.76% | -23.02% |
Max Drawdown (10Y)Largest decline over 10 years | — | -56.77% | — |
Current DrawdownCurrent decline from peak | -3.00% | -13.66% | +10.66% |
Average DrawdownAverage peak-to-trough decline | -16.86% | -9.10% | -7.76% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.08% | 10.48% | -4.40% |
Volatility
NREF vs. ARCC - Volatility Comparison
NexPoint Real Estate Finance, Inc. (NREF) has a higher volatility of 7.63% compared to Ares Capital Corporation (ARCC) at 3.94%. This indicates that NREF'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
| NREF | ARCC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.63% | 3.94% | +3.69% |
Volatility (6M)Calculated over the trailing 6-month period | 16.81% | 14.71% | +2.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.93% | 18.40% | +7.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 33.22% | 19.96% | +13.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 45.77% | 25.58% | +20.19% |
Dividends
NREF vs. ARCC - Dividend Comparison
NREF's dividend yield for the trailing twelve months is around 12.89%, more than ARCC's 10.28% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 10.28% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
NREF NexPoint Real Estate Finance, Inc. | 12.89% | 14.20% | 12.75% | 17.40% | 12.59% | 9.87% | 8.59% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Financials
NREF vs. ARCC - Financials Comparison
This section allows you to compare key financial metrics between NexPoint Real Estate Finance, 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
NREF vs. ARCC - Profitability Comparison
NREF - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, NexPoint Real Estate Finance, Inc. reported a gross profit of 41.79M and revenue of 41.79M. 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%.
NREF - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, NexPoint Real Estate Finance, Inc. reported an operating income of 31.79M and revenue of 41.79M, resulting in an operating margin of 76.1%.
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%.
NREF - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, NexPoint Real Estate Finance, Inc. reported a net income of 20.27M and revenue of 41.79M, resulting in a net margin of 48.5%.
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
NREF and ARCC have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NREF has higher volatility (7.63%) compared to ARCC (3.94%). In terms of maximum drawdown, NREF dropped -66.09% vs ARCC's -79.36%.
NREF currently has the higher Sharpe Ratio (0.71 vs -0.36), 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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