DSM vs FMN: Correlation
BNY Mellon Strategic Municipal Bond Fund, Inc. (DSM) and Federated Hermes Premier Municipal Income Fund (FMN) show a very strong relationship: their 3-year correlation of weekly returns is 0.84.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DSM and FMN?
Across a 3-year window, the weekly returns of DSM and FMN correlate at 0.84, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.82 lands near the 3-year figure. Stretching to 5 years gives 0.76, with an annualized covariance of 116.1 %².
Among the 18 assets we track against DSM, FMN ranks #6 by 3-year correlation. Their 12-month results are close: +8.6% for DSM against +9.5% for FMN.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
DSM vs FMN: side by side
| DSM (BNY Mellon Strategic Municipal Bond Fund, Inc.) | FMN (Federated Hermes Premier Municipal Income Fund) | |
|---|---|---|
| 1-year return | +8.6% | +9.5% |
| 5-year return | -13.5% | -12.8% |
| Volatility (ann.) | 12.4% | 11.1% |
| Beta vs S&P 500 | 0.29 | 0.24 |
| Max drawdown (3Y) | -13.4% | -16.3% |
| Market cap | $0.3B | $0.1B |
| P/E (trailing) | 9.2 | 9.7 |
| Dividend yield | 4.94% | 4.57% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | DSM | FMN |
|---|---|---|
| 2022 | -27.0% | -26.7% |
| 2023 | +3.2% | +9.2% |
| 2024 | +5.5% | +3.2% |
| 2025 | +10.9% | +6.8% |
| 2026 | -2.4% | +2.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DSM and FMN good diversifiers for each other?
No: a correlation of 0.84 means DSM and FMN tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between DSM and FMN?
Using weekly returns as of 2026-08-27: 0.84 over 3 years, with 0.82 over the last year and 0.76 over 5 years.
Is FMN a good diversifier for DSM?
No: a correlation of 0.84 means DSM and FMN tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.84 mean?
On the −1 to +1 scale, 0.84 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dsm-vs-fmn.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dsm-vs-fmn/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DSM correlations · FMN correlations
