ARBFX vs. AEDNX

Last updated Jun 5, 2026

ARBFX (The Arbitrage Fund) and AEDNX (Water Island Event-Driven Fund) are both Event Driven funds from Arbitrage Fund. Over the past 10 years, ARBFX returned 3.23%/yr vs 4.21%/yr for AEDNX. A 0.74 correlation means they provide meaningful diversification when combined. ARBFX charges 1.43%/yr vs 1.44%/yr for AEDNX.

Performance

ARBFX vs. AEDNX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The Arbitrage Fund (ARBFX) and Water Island Event-Driven Fund (AEDNX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARBFX achieves a 1.12% return, which is significantly lower than AEDNX's 1.48% return. Over the past 10 years, ARBFX has underperformed AEDNX with an annualized return of 3.23%, while AEDNX has yielded a comparatively higher 4.21% annualized return.

ARBFX

• 1D: 0.00%
• 1M: 0.15%
• YTD: 1.12%
• 6M: 1.87%
• 1Y: 6.17%
• 3Y*: 6.47%
• 5Y*: 2.82%
• 10Y*: 3.23%

AEDNX

• 1D: -0.15%
• 1M: -0.23%
• YTD: 1.48%
• 6M: 2.21%
• 1Y: 6.96%
• 3Y*: 6.68%
• 5Y*: 2.83%
• 10Y*: 4.21%

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

ARBFX vs. AEDNX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARBFX The Arbitrage Fund	1.12%	8.01%	2.61%	5.94%	-1.02%	0.85%	5.42%	3.57%	2.12%	2.59%
AEDNX Water Island Event-Driven Fund	1.48%	8.67%	2.26%	5.90%	-0.63%	1.18%	13.42%	4.76%	-0.15%	3.89%

Correlation

The correlation between ARBFX and AEDNX is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Oct 1, 2010	0.74

The correlation between ARBFX and AEDNX shifts across timeframes, from 0.74 (all time) to 0.92 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

ARBFX vs. AEDNX — Risk / Return Rank

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

ARBFX

ARBFX Risk / Return Rank: 96
ARBFX Sharpe Ratio Rank: 95
ARBFX Sortino Ratio Rank: 97
ARBFX Omega Ratio Rank: 95
ARBFX Calmar Ratio Rank: 97
ARBFX Martin Ratio Rank: 98

AEDNX

AEDNX Risk / Return Rank: 91
AEDNX Sharpe Ratio Rank: 87
AEDNX Sortino Ratio Rank: 93
AEDNX Omega Ratio Rank: 90
AEDNX Calmar Ratio Rank: 93
AEDNX Martin Ratio Rank: 90

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.

ARBFX vs. AEDNX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Arbitrage Fund (ARBFX) and Water Island Event-Driven Fund (AEDNX). 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.

	ARBFX	AEDNX	Difference
Sharpe ratio: Return per unit of total volatility	3.33	2.83	+0.50
Sortino ratio: Return per unit of downside risk	5.87	4.79	+1.08
Omega ratio: Gain probability vs. loss probability	1.79	1.67	+0.12
Calmar ratio: Return relative to maximum drawdown	7.01	5.09	+1.92
Martin ratio: Return relative to average drawdown	31.08	17.86	+13.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ARBFX vs. AEDNX - Sharpe Ratio Comparison

The current ARBFX Sharpe Ratio is 3.33, which is comparable to the AEDNX Sharpe Ratio of 2.83. The chart below compares the historical Sharpe Ratios of ARBFX and AEDNX, 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

	ARBFX	AEDNX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.33	2.83	+0.50
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	0.70	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.73	0.82	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.64	-0.30

Drawdowns

ARBFX vs. AEDNX - Drawdown Comparison

The maximum ARBFX drawdown since its inception was -38.01%, which is greater than AEDNX's maximum drawdown of -13.03%. Use the drawdown chart below to compare losses from any high point for ARBFX and AEDNX.

Drawdown Indicators

	ARBFX	AEDNX	Difference
Max Drawdown Largest peak-to-trough decline	-38.01%	-13.03%	-24.98%
Max Drawdown (1Y) Largest decline over 1 year	-0.88%	-1.37%	+0.49%
Max Drawdown (3Y) Largest decline over 3 years	-2.26%	-2.79%	+0.53%
Max Drawdown (5Y) Largest decline over 5 years	-7.64%	-8.94%	+1.30%
Max Drawdown (10Y) Largest decline over 10 years	-11.90%	-12.24%	+0.34%
Current Drawdown Current decline from peak	-0.00%	-0.92%	+0.92%
Average Drawdown Average peak-to-trough decline	-2.37%	-2.71%	+0.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	0.39%	-0.19%

Volatility

ARBFX vs. AEDNX - Volatility Comparison

The current volatility for The Arbitrage Fund (ARBFX) is 0.31%, while Water Island Event-Driven Fund (AEDNX) has a volatility of 0.95%. This indicates that ARBFX experiences smaller price fluctuations and is considered to be less risky than AEDNX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARBFX	AEDNX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.31%	0.95%	-0.64%
Volatility (6M) Calculated over the trailing 6-month period	1.17%	2.13%	-0.96%
Volatility (1Y) Calculated over the trailing 1-year period	1.86%	2.47%	-0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.64%	4.05%	-0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.42%	5.15%	-0.73%

ARBFX vs. AEDNX - Expense Ratio Comparison

ARBFX has a 1.43% expense ratio, which is lower than AEDNX's 1.44% expense ratio.

Dividends

ARBFX vs. AEDNX - Dividend Comparison

ARBFX's dividend yield for the trailing twelve months is around 3.55%, more than AEDNX's 0.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AEDNX Water Island Event-Driven Fund	0.93%	0.95%	0.20%	0.72%	0.00%	0.00%	0.24%	0.46%	1.78%	0.62%	0.00%	2.79%
ARBFX The Arbitrage Fund	3.55%	3.59%	0.94%	1.92%	3.67%	0.53%	6.94%	2.12%	1.71%	3.55%	0.96%	2.36%

Frequently Asked Questions

Can I hold both ARBFX and AEDNX in my portfolio?

ARBFX and AEDNX have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARBFX or AEDNX?

AEDNX has higher volatility (0.95%) compared to ARBFX (0.31%). In terms of maximum drawdown, ARBFX dropped -38.01% vs AEDNX's -13.03%.

Which has better risk-adjusted returns?

ARBFX currently has the higher Sharpe Ratio (3.33 vs 2.83), 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.