ARBNX vs. HMEZX
ARBNX (The Arbitrage Fund Class Institutional) and HMEZX (NexPoint Merger Arbitrage Fund) are both Event Driven funds. Over the past 10 years, ARBNX returned 3.48%/yr vs 5.89%/yr for HMEZX. At a 0.40 correlation, their price movements are largely independent. ARBNX charges 1.49%/yr vs 1.50%/yr for HMEZX.
Performance
ARBNX vs. HMEZX - Performance Comparison
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Returns By Period
In the year-to-date period, ARBNX achieves a 1.21% return, which is significantly lower than HMEZX's 1.72% return. Over the past 10 years, ARBNX has underperformed HMEZX with an annualized return of 3.48%, while HMEZX has yielded a comparatively higher 5.89% annualized return.
ARBNX
- 1D
- 0.07%
- 1M
- 0.21%
- YTD
- 1.21%
- 6M
- 1.86%
- 1Y
- 6.43%
- 3Y*
- 6.73%
- 5Y*
- 3.10%
- 10Y*
- 3.48%
HMEZX
- 1D
- -0.05%
- 1M
- 0.25%
- YTD
- 1.72%
- 6M
- 1.89%
- 1Y
- 5.55%
- 3Y*
- 6.92%
- 5Y*
- 4.89%
- 10Y*
- 5.89%
ARBNX vs. HMEZX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ARBNX The Arbitrage Fund Class Institutional | 1.21% | 8.29% | 2.95% | 6.05% | -0.67% | 1.05% | 5.71% | 3.84% | 2.33% | 2.87% |
HMEZX NexPoint Merger Arbitrage Fund | 1.72% | 6.30% | 7.42% | 4.10% | 2.70% | 5.37% | 8.46% | 8.10% | 5.92% | 5.48% |
Correlation
The correlation between ARBNX and HMEZX is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.43 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.46 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.40 |
Correlation (All Time) Calculated using the full available price history since Jan 5, 2016 | 0.40 |
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Return for Risk
ARBNX vs. HMEZX — Risk / Return Rank
ARBNX
HMEZX
ARBNX vs. HMEZX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for The Arbitrage Fund Class Institutional (ARBNX) and NexPoint Merger Arbitrage Fund (HMEZX). 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.
| ARBNX | HMEZX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.00 | ||
| Sortino ratioReturn per unit of downside risk | -1.73 | ||
| Omega ratioGain probability vs. loss probability | 1.84 | 2.19 | -0.35 |
| Calmar ratioReturn relative to maximum drawdown | 7.20 | 10.25 | -3.05 |
| Martin ratioReturn relative to average drawdown | 34.43 | 58.26 | -23.83 |
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
| ARBNX | HMEZX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.56 | 4.56 | -1.00 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.86 | 2.92 | -2.06 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.79 | 1.56 | -0.77 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.58 | 1.59 | -1.02 |
Drawdowns
ARBNX vs. HMEZX - Drawdown Comparison
The maximum ARBNX drawdown since its inception was -14.42%, which is greater than HMEZX's maximum drawdown of -6.86%. Use the drawdown chart below to compare losses from any high point for ARBNX and HMEZX.
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Drawdown Indicators
| ARBNX | HMEZX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.42% | -6.86% | -7.56% |
Max Drawdown (1Y)Largest decline over 1 year | -0.92% | -0.55% | -0.37% |
Max Drawdown (3Y)Largest decline over 3 years | -2.24% | -1.06% | -1.18% |
Max Drawdown (5Y)Largest decline over 5 years | -7.44% | -1.94% | -5.50% |
Max Drawdown (10Y)Largest decline over 10 years | -11.90% | -6.86% | -5.04% |
Current DrawdownCurrent decline from peak | -0.07% | -0.05% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -1.22% | -0.37% | -0.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.19% | 0.10% | +0.09% |
Volatility
ARBNX vs. HMEZX - Volatility Comparison
The Arbitrage Fund Class Institutional (ARBNX) has a higher volatility of 0.29% compared to NexPoint Merger Arbitrage Fund (HMEZX) at 0.24%. This indicates that ARBNX's price experiences larger fluctuations and is considered to be riskier than HMEZX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARBNX | HMEZX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.29% | 0.24% | +0.05% |
Volatility (6M)Calculated over the trailing 6-month period | 1.14% | 0.86% | +0.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.86% | 1.23% | +0.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.63% | 1.68% | +1.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.42% | 3.80% | +0.62% |
ARBNX vs. HMEZX - Expense Ratio Comparison
ARBNX has a 1.49% expense ratio, which is lower than HMEZX's 1.50% expense ratio.
Dividends
ARBNX vs. HMEZX - Dividend Comparison
ARBNX's dividend yield for the trailing twelve months is around 3.68%, less than HMEZX's 5.02% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARBNX The Arbitrage Fund Class Institutional | 3.68% | 3.72% | 1.18% | 2.11% | 3.85% | 0.51% | 6.70% | 2.12% | 1.93% | 3.80% | 0.93% | 2.30% |
HMEZX NexPoint Merger Arbitrage Fund | 5.02% | 5.04% | 6.36% | 5.07% | 5.11% | 3.63% | 5.83% | 0.33% | 19.16% | 6.88% | 0.02% | 0.00% |
Frequently Asked Questions
ARBNX and HMEZX have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ARBNX has higher volatility (0.29%) compared to HMEZX (0.24%). In terms of maximum drawdown, ARBNX dropped -14.42% vs HMEZX's -6.86%.
HMEZX currently has the higher Sharpe Ratio (4.56 vs 3.56), 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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