Yes. You can make a diagram like that in Mathematica. Mathematica has a very useful language for creating 2d vector graphics.
You usually use Mathematica for making plots that require you to do some computing. Most of those arrows probably have to be placed by hand. If you want to do that with Mathematica, I would use the Drawing Tools:
https://reference.wolfram.com/language/tutorial/InteractiveGraphicsPalette.html
