For the most part.
It's important to clarify that in this context, "stronger" and "weaker" means having more or less arena points. That does not necessarily mean the player is stronger or weaker in skill level. At the top of the arena hear the end of a season, it likely does.
But, someone could be the best player on the site and yet had only just reached elite level because of not having played Arena much yet that season. That would be a tough matchup for whoever gets matched with that player, since the player would be highly skilled but have a low number of arena points.
Or at least, that's how I've been told it works. Am I mistaken? Does it simply use the Elo difference and double it? I thought it was based on the difference in arena tokens/points.