DSM vs KTF: Correlation
How closely do BNY Mellon Strategic Municipal Bond Fund, Inc. (DSM) and DWS Municipal Income Trust (KTF) trade together? Their weekly returns over three years give a correlation of 0.78, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DSM and KTF?
On 3 years of weekly data the DSM/KTF correlation comes out at 0.78, strong. The relationship has been stable: the 1-year correlation (0.79) sits close to the 3-year figure. The 5-year figure is 0.78, and annualized covariance runs at 113.9 %².
By 3-year correlation, KTF places #10 of the 18 assets tracked against DSM. Their 12-month results are close: +8.6% for DSM against +9.8% for KTF.
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 KTF: side by side
| DSM (BNY Mellon Strategic Municipal Bond Fund, Inc.) | KTF (DWS Municipal Income Trust) | |
|---|---|---|
| 1-year return | +8.6% | +9.8% |
| 5-year return | -13.5% | -3.3% |
| Volatility (ann.) | 12.4% | 11.7% |
| Beta vs S&P 500 | 0.29 | 0.19 |
| Max drawdown (3Y) | -13.4% | -11.3% |
| Market cap | $0.3B | $0.3B |
| P/E (trailing) | 9.2 | 10.1 |
| Dividend yield | 4.94% | 8.35% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | DSM | KTF |
|---|---|---|
| 2022 | -27.0% | -23.7% |
| 2023 | +3.2% | +7.1% |
| 2024 | +5.5% | +13.8% |
| 2025 | +10.9% | +4.6% |
| 2026 | -2.4% | +2.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DSM and KTF good diversifiers for each other?
To a limited degree. At 0.78 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between DSM and KTF?
The DSM/KTF correlation stands at 0.78 on a 3-year window (1 year: 0.79, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is KTF a good diversifier for DSM?
To a limited degree. At 0.78 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.78 mean?
On the −1 to +1 scale, 0.78 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-ktf.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dsm-vs-ktf/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DSM correlations · KTF correlations
