DSM vs MHD: Correlation
BNY Mellon Strategic Municipal Bond Fund, Inc. (DSM) and Blackrock MuniHoldings Fund, Inc. (MHD) show a very strong relationship: their 3-year correlation of weekly returns is 0.85.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DSM and MHD?
Over the past 3 years, DSM and MHD moved with a correlation of 0.85, which is very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.72 versus 0.85 over 3 years. Over 5 years the correlation is 0.82, and the annualized covariance of weekly returns is 123.4 %².
Within DSM's tracked universe of 18 assets, MHD comes in at #4 by 3-year correlation. 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 MHD: side by side
| DSM (BNY Mellon Strategic Municipal Bond Fund, Inc.) | MHD (Blackrock MuniHoldings Fund, Inc.) | |
|---|---|---|
| 1-year return | +8.6% | +10.2% |
| 5-year return | -13.5% | -12.7% |
| Volatility (ann.) | 12.4% | 11.7% |
| Beta vs S&P 500 | 0.29 | 0.26 |
| Max drawdown (3Y) | -13.4% | -13.2% |
| Market cap | $0.3B | – |
| P/E (trailing) | 9.2 | 37.0 |
| Dividend yield | 4.94% | 6.23% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | DSM | MHD |
|---|---|---|
| 2022 | -27.0% | -23.7% |
| 2023 | +3.2% | +2.1% |
| 2024 | +5.5% | +3.4% |
| 2025 | +10.9% | +7.1% |
| 2026 | -2.4% | +1.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DSM and MHD good diversifiers for each other?
No. With a correlation of 0.85, DSM and MHD move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between DSM and MHD?
Using weekly returns as of 2026-08-27: 0.85 over 3 years, with 0.72 over the last year and 0.82 over 5 years.
Is MHD a good diversifier for DSM?
No. With a correlation of 0.85, DSM and MHD move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.85 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dsm-vs-mhd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dsm-vs-mhd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DSM correlations · MHD correlations
