DSM vs LEO: Correlation
How closely do BNY Mellon Strategic Municipal Bond Fund, Inc. (DSM) and BNY Mellon Strategic Municipals, Inc. (LEO) trade together? Their weekly returns over three years give a correlation of 0.92, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DSM and LEO?
On 3 years of weekly data the DSM/LEO correlation comes out at 0.92, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.89) sits close to the 3-year figure. The 5-year figure is 0.82, and annualized covariance runs at 139.5 %².
LEO is one of the assets that tracks DSM most closely: it ranks #1 out of the 18 assets we track against DSM. Neither side won the trailing year by much: +8.6% against +10.2%.
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 LEO: side by side
| DSM (BNY Mellon Strategic Municipal Bond Fund, Inc.) | LEO (BNY Mellon Strategic Municipals, Inc.) | |
|---|---|---|
| 1-year return | +8.6% | +10.2% |
| 5-year return | -13.5% | -18.0% |
| Volatility (ann.) | 12.4% | 12.2% |
| Beta vs S&P 500 | 0.29 | 0.26 |
| Max drawdown (3Y) | -13.4% | -13.1% |
| Market cap | $0.3B | $0.4B |
| P/E (trailing) | 9.2 | 30.9 |
| Dividend yield | 4.94% | 4.41% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | DSM | LEO |
|---|---|---|
| 2022 | -27.0% | -24.1% |
| 2023 | +3.2% | +0.1% |
| 2024 | +5.5% | +6.9% |
| 2025 | +10.9% | +9.9% |
| 2026 | -2.4% | +0.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DSM and LEO good diversifiers for each other?
No: a correlation of 0.92 means DSM and LEO tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between DSM and LEO?
As of 2026-08-27, the correlation of weekly returns between DSM and LEO is 0.92 over 3 years, 0.89 over 1 year and 0.82 over 5 years.
Is LEO a good diversifier for DSM?
No: a correlation of 0.92 means DSM and LEO tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.92 mean?
A reading of 0.92 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dsm-vs-leo.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/dsm-vs-leo/)
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Related comparisons
Hubs: DSM correlations · LEO correlations
