ADAIX vs. MSTVX

Last updated Jun 4, 2026

ADAIX (AQR Diversified Arbitrage Fund Class I) and MSTVX (Morningstar Alternatives Fund) are both Multistrategy funds. Over the past 5 years, ADAIX returned 2.99%/yr vs 3.68%/yr for MSTVX. At a 0.39 correlation, their price movements are largely independent. ADAIX charges 1.38%/yr vs 1.15%/yr for MSTVX.

Performance

ADAIX vs. MSTVX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AQR Diversified Arbitrage Fund Class I (ADAIX) and Morningstar Alternatives Fund (MSTVX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ADAIX achieves a 2.96% return, which is significantly higher than MSTVX's 0.75% return.

ADAIX

• 1D: -0.08%
• 1M: 0.69%
• YTD: 2.96%
• 6M: 3.46%
• 1Y: 6.74%
• 3Y*: 6.25%
• 5Y*: 2.99%
• 10Y*: 6.85%

MSTVX

• 1D: 0.00%
• 1M: 0.09%
• YTD: 0.75%
• 6M: 1.70%
• 1Y: 4.29%
• 3Y*: 6.71%
• 5Y*: 3.68%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ADAIX vs. MSTVX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
ADAIX AQR Diversified Arbitrage Fund Class I	2.96%	8.03%	3.19%	4.51%	-3.30%	6.27%	25.24%	8.53%	-1.79%
MSTVX Morningstar Alternatives Fund	0.75%	6.42%	6.37%	6.86%	-2.69%	4.20%	3.81%	5.82%	-0.05%

Correlation

The correlation between ADAIX and MSTVX is 0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.09
Correlation (3Y) Calculated over the trailing 3-year period	0.26
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (All Time) Calculated using the full available price history since Nov 6, 2018	0.39

Over the past year, the correlation between ADAIX and MSTVX has dropped to 0.09 - well below their long-term average of 0.39, suggesting their price drivers have been diverging.

Return for Risk

ADAIX vs. MSTVX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ADAIX

ADAIX Risk / Return Rank: 99
ADAIX Sharpe Ratio Rank: 99
ADAIX Sortino Ratio Rank: 99
ADAIX Omega Ratio Rank: 98
ADAIX Calmar Ratio Rank: 99
ADAIX Martin Ratio Rank: 99

MSTVX

MSTVX Risk / Return Rank: 63
MSTVX Sharpe Ratio Rank: 67
MSTVX Sortino Ratio Rank: 80
MSTVX Omega Ratio Rank: 74
MSTVX Calmar Ratio Rank: 59
MSTVX Martin Ratio Rank: 37

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ADAIX vs. MSTVX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AQR Diversified Arbitrage Fund Class I (ADAIX) and Morningstar Alternatives Fund (MSTVX). 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.

	ADAIX	MSTVX	Difference
Sharpe ratio: Return per unit of total volatility	4.84	2.39	+2.45
Sortino ratio: Return per unit of downside risk	8.18	3.80	+4.38
Omega ratio: Gain probability vs. loss probability	2.26	1.49	+0.77
Calmar ratio: Return relative to maximum drawdown	14.61	2.94	+11.68
Martin ratio: Return relative to average drawdown	44.38	8.10	+36.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ADAIX vs. MSTVX - Sharpe Ratio Comparison

The current ADAIX Sharpe Ratio is 4.84, which is higher than the MSTVX Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of ADAIX and MSTVX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ADAIX	MSTVX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.84	2.39	+2.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.15	1.22	-0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.59	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.21	1.35	-0.14

Drawdowns

ADAIX vs. MSTVX - Drawdown Comparison

The maximum ADAIX drawdown since its inception was -14.75%, which is greater than MSTVX's maximum drawdown of -8.02%. Use the drawdown chart below to compare losses from any high point for ADAIX and MSTVX.

Drawdown Indicators

	ADAIX	MSTVX	Difference
Max Drawdown Largest peak-to-trough decline	-14.75%	-8.02%	-6.73%
Max Drawdown (1Y) Largest decline over 1 year	-0.46%	-1.84%	+1.38%
Max Drawdown (3Y) Largest decline over 3 years	-1.78%	-3.31%	+1.53%
Max Drawdown (5Y) Largest decline over 5 years	-7.40%	-5.89%	-1.51%
Max Drawdown (10Y) Largest decline over 10 years	-14.75%	—	—
Current Drawdown Current decline from peak	-0.15%	-1.47%	+1.32%
Average Drawdown Average peak-to-trough decline	-2.82%	-1.17%	-1.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.15%	0.71%	-0.56%

Volatility

ADAIX vs. MSTVX - Volatility Comparison

The current volatility for AQR Diversified Arbitrage Fund Class I (ADAIX) is 0.37%, while Morningstar Alternatives Fund (MSTVX) has a volatility of 0.54%. This indicates that ADAIX experiences smaller price fluctuations and is considered to be less risky than MSTVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ADAIX	MSTVX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.37%	0.54%	-0.17%
Volatility (6M) Calculated over the trailing 6-month period	1.06%	1.72%	-0.66%
Volatility (1Y) Calculated over the trailing 1-year period	1.40%	2.26%	-0.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.62%	3.15%	-0.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.32%	3.14%	+1.18%

ADAIX vs. MSTVX - Expense Ratio Comparison

ADAIX has a 1.38% expense ratio, which is higher than MSTVX's 1.15% expense ratio.

Dividends

ADAIX vs. MSTVX - Dividend Comparison

ADAIX's dividend yield for the trailing twelve months is around 2.06%, less than MSTVX's 3.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ADAIX AQR Diversified Arbitrage Fund Class I	2.06%	2.12%	1.23%	2.74%	0.10%	0.65%	1.60%	2.11%	6.53%	7.17%	7.18%	4.93%
MSTVX Morningstar Alternatives Fund	3.39%	3.41%	3.07%	3.86%	3.92%	4.99%	2.91%	1.74%	0.25%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ADAIX and MSTVX in my portfolio?

ADAIX and MSTVX have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ADAIX or MSTVX?

MSTVX has higher volatility (0.54%) compared to ADAIX (0.37%). In terms of maximum drawdown, ADAIX dropped -14.75% vs MSTVX's -8.02%.

Which has better risk-adjusted returns?

ADAIX currently has the higher Sharpe Ratio (4.84 vs 2.39), 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.