HMEZX vs. AEDNX

Last updated Jun 4, 2026

HMEZX (NexPoint Merger Arbitrage Fund) and AEDNX (Water Island Event-Driven Fund) are both Event Driven funds. Over the past 10 years, HMEZX returned 5.89%/yr vs 4.22%/yr for AEDNX. At a 0.35 correlation, their price movements are largely independent. HMEZX charges 1.50%/yr vs 1.44%/yr for AEDNX.

Performance

HMEZX vs. AEDNX - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with HMEZX having a 1.72% return and AEDNX slightly lower at 1.64%. Over the past 10 years, HMEZX has outperformed AEDNX with an annualized return of 5.89%, while AEDNX has yielded a comparatively lower 4.22% annualized return.

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%

AEDNX

• 1D: -0.23%
• 1M: 0.15%
• YTD: 1.64%
• 6M: 2.29%
• 1Y: 7.12%
• 3Y*: 6.74%
• 5Y*: 2.90%
• 10Y*: 4.22%

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

HMEZX vs. AEDNX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
AEDNX Water Island Event-Driven Fund	1.64%	8.67%	2.26%	5.90%	-0.63%	1.18%	13.42%	4.76%	-0.15%	3.89%

Correlation

The correlation between HMEZX and AEDNX is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (10Y) Calculated over the trailing 10-year period	0.35
Correlation (All Time) Calculated using the full available price history since Jan 5, 2016	0.35

Return for Risk

HMEZX vs. AEDNX — Risk / Return Rank

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

HMEZX

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

AEDNX

AEDNX Risk / Return Rank: 92
AEDNX Sharpe Ratio Rank: 89
AEDNX Sortino Ratio Rank: 95
AEDNX Omega Ratio Rank: 93
AEDNX Calmar Ratio Rank: 93
AEDNX Martin Ratio Rank: 91

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.

HMEZX vs. AEDNX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NexPoint Merger Arbitrage Fund (HMEZX) 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.

	HMEZX	AEDNX	Difference
Sharpe ratio: Return per unit of total volatility	4.56	2.94	+1.62
Sortino ratio: Return per unit of downside risk	8.08	4.98	+3.10
Omega ratio: Gain probability vs. loss probability	2.19	1.70	+0.49
Calmar ratio: Return relative to maximum drawdown	10.25	5.27	+4.97
Martin ratio: Return relative to average drawdown	58.26	18.71	+39.55
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HMEZX vs. AEDNX - Sharpe Ratio Comparison

The current HMEZX Sharpe Ratio is 4.56, which is higher than the AEDNX Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of HMEZX 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

	HMEZX	AEDNX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.56	2.94	+1.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	2.92	0.72	+2.20
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.56	0.82	+0.74
Sharpe Ratio (All Time) Calculated using the full available price history	1.59	0.64	+0.95

Drawdowns

HMEZX vs. AEDNX - Drawdown Comparison

The maximum HMEZX drawdown since its inception was -6.86%, smaller than the maximum AEDNX drawdown of -13.03%. Use the drawdown chart below to compare losses from any high point for HMEZX and AEDNX.

Drawdown Indicators

	HMEZX	AEDNX	Difference
Max Drawdown Largest peak-to-trough decline	-6.86%	-13.03%	+6.17%
Max Drawdown (1Y) Largest decline over 1 year	-0.55%	-1.37%	+0.82%
Max Drawdown (3Y) Largest decline over 3 years	-1.06%	-2.79%	+1.73%
Max Drawdown (5Y) Largest decline over 5 years	-1.94%	-8.94%	+7.00%
Max Drawdown (10Y) Largest decline over 10 years	-6.86%	-12.24%	+5.38%
Current Drawdown Current decline from peak	-0.05%	-0.76%	+0.71%
Average Drawdown Average peak-to-trough decline	-0.37%	-2.71%	+2.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.10%	0.39%	-0.29%

Volatility

HMEZX vs. AEDNX - Volatility Comparison

The current volatility for NexPoint Merger Arbitrage Fund (HMEZX) is 0.24%, while Water Island Event-Driven Fund (AEDNX) has a volatility of 0.95%. This indicates that HMEZX 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

	HMEZX	AEDNX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.24%	0.95%	-0.71%
Volatility (6M) Calculated over the trailing 6-month period	0.86%	2.13%	-1.27%
Volatility (1Y) Calculated over the trailing 1-year period	1.23%	2.47%	-1.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.68%	4.05%	-2.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.80%	5.15%	-1.35%

HMEZX vs. AEDNX - Expense Ratio Comparison

HMEZX has a 1.50% expense ratio, which is higher than AEDNX's 1.44% expense ratio.

Dividends

HMEZX vs. AEDNX - Dividend Comparison

HMEZX's dividend yield for the trailing twelve months is around 5.02%, 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%
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

Can I hold both HMEZX and AEDNX in my portfolio?

HMEZX and AEDNX have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HMEZX or AEDNX?

AEDNX has higher volatility (0.95%) compared to HMEZX (0.24%). In terms of maximum drawdown, HMEZX dropped -6.86% vs AEDNX's -13.03%.

Which has better risk-adjusted returns?

HMEZX currently has the higher Sharpe Ratio (4.56 vs 2.94), 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.