ARBFX vs. MERFX
ARBFX (The Arbitrage Fund) and MERFX (The Merger Fund) are both Event Driven funds. Over the past 10 years, ARBFX returned 3.27%/yr vs 3.94%/yr for MERFX. Their 0.57 correlation means they have sometimes moved together and sometimes differently. ARBFX charges 1.43%/yr vs 1.50%/yr for MERFX.
Performance
ARBFX vs. MERFX - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with ARBFX having a 1.56% return and MERFX slightly lower at 1.51%. Over the past 10 years, ARBFX has underperformed MERFX with an annualized return of 3.27%, while MERFX has yielded a comparatively higher 3.94% annualized return.
ARBFX
- 1D
- 0.00%
- 1M
- -0.15%
- 6M
- 1.34%
- YTD
- 1.56%
- 1Y
- 4.82%
- 3Y*
- 5.64%
- 5Y*
- 3.56%
- 10Y*
- 3.27%
- ALL TIME*
- 3.85%
MERFX
- 1D
- 0.00%
- 1M
- 0.06%
- 6M
- 1.45%
- YTD
- 1.51%
- 1Y
- 3.75%
- 3Y*
- 5.92%
- 5Y*
- 3.70%
- 10Y*
- 3.94%
- ALL TIME*
- 4.25%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
ARBFX The Arbitrage Fund | $0.00 | $0.00 | $0.00 |
MERFX The Merger Fund | $0.00 | $0.00 | $0.00 |
ARBFX vs. MERFX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ARBFX The Arbitrage Fund | 1.56% | 8.01% | 2.61% | 5.94% | -1.02% | 0.85% | 5.42% | 3.57% | 2.12% | 2.59% |
MERFX The Merger Fund | 1.51% | 8.11% | 3.27% | 4.17% | 0.71% | -0.19% | 4.87% | 5.96% | 7.68% | 2.39% |
Correlation
The correlation between ARBFX and MERFX is 0.45, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.45 |
Correlation (3Y) Balances recent behavior with more history. | 0.60 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.67 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.64 |
Correlation (All Time) Calculated using the full available price history since Sep 18, 2000 | 0.57 |
The correlation between ARBFX and MERFX shifts across timeframes, from 0.45 (1 year) to 0.67 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
ARBFX vs. MERFX — Risk / Return Rank
ARBFX
MERFX
ARBFX vs. MERFX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for The Arbitrage Fund (ARBFX) and The Merger Fund (MERFX). 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.
| ARBFX | MERFX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.07 | ||
| Sortino ratioReturn per unit of downside risk | +0.05 | ||
| Omega ratioGain probability vs. loss probability | 1.52 | 1.53 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 5.30 | 7.15 | -1.85 |
| Martin ratioReturn relative to average drawdown | 22.62 | 27.92 | -5.31 |
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Drawdowns
ARBFX vs. MERFX - Drawdown Comparison
The maximum ARBFX drawdown since its inception was -38.01%, which is greater than MERFX's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for ARBFX and MERFX.
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Drawdown Indicators
| ARBFX | MERFX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.01% | -20.82% | -17.19% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -0.52% | -0.36% |
Max Drawdown (3Y)Largest decline over 3 years | -2.26% | -3.36% | +1.10% |
Max Drawdown (5Y)Largest decline over 5 years | -6.15% | -3.56% | -2.59% |
Max Drawdown (10Y)Largest decline over 10 years | -11.90% | -9.35% | -2.55% |
Current DrawdownCurrent decline from peak | -0.36% | -0.23% | -0.13% |
Average DrawdownAverage peak-to-trough decline | -2.35% | -2.65% | +0.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.21% | 0.13% | +0.08% |
Volatility
ARBFX vs. MERFX - Volatility Comparison
The Arbitrage Fund (ARBFX) and The Merger Fund (MERFX) have volatilities of 0.54% and 0.55%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARBFX | MERFX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.54% | 0.55% | -0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 1.23% | 1.23% | 0.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.87% | 1.52% | +0.35% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.58% | 3.36% | +0.22% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.42% | 3.75% | +0.67% |
ARBFX vs. MERFX - Expense Ratio Comparison
ARBFX has a 1.43% expense ratio, which is lower than MERFX's 1.50% expense ratio.
Dividends
ARBFX vs. MERFX - Dividend Comparison
ARBFX's dividend yield for the trailing twelve months is around 3.53%, less than MERFX's 7.31% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARBFX The Arbitrage Fund | 3.53% | 3.59% | 0.94% | 1.92% | 3.67% | 0.53% | 6.94% | 2.12% | 1.71% | 3.55% | 0.96% | 2.36% |
MERFX The Merger Fund | 7.31% | 7.42% | 3.24% | 2.59% | 3.50% | 0.27% | 3.31% | 1.34% | 4.52% | 0.59% | 0.32% | 1.25% |
Frequently Asked Questions
ARBFX and MERFX have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MERFX has higher volatility (0.55%) compared to ARBFX (0.54%). In terms of maximum drawdown, ARBFX dropped -38.01% vs MERFX's -20.82%.
ARBFX currently has the higher Sharpe Ratio (2.50 vs 2.44), 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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