DSM vs MHF: Correlation
How closely do BNY Mellon Strategic Municipal Bond Fund, Inc. (DSM) and Western Asset Municipal High Income Fund, Inc. (MHF) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DSM and MHF?
Over the past 3 years, DSM and MHF moved with a correlation of 0.56, which is moderate. The link has loosened recently: the 1-year correlation (0.46) runs below the 3-year figure (0.56). Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 84.8 %².
By 3-year correlation, MHF places #13 of the 18 assets tracked against DSM. Their 12-month results are close: +8.6% for DSM against +5.6% for MHF.
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 MHF: side by side
| DSM (BNY Mellon Strategic Municipal Bond Fund, Inc.) | MHF (Western Asset Municipal High Income Fund, Inc.) | |
|---|---|---|
| 1-year return | +8.6% | +5.6% |
| 5-year return | -13.5% | +6.2% |
| Volatility (ann.) | 12.4% | 12.2% |
| Beta vs S&P 500 | 0.29 | 0.32 |
| Max drawdown (3Y) | -13.4% | -13.3% |
| Market cap | $0.3B | $0.2B |
| P/E (trailing) | 9.2 | 18.0 |
| Dividend yield | 4.94% | 5.93% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | DSM | MHF |
|---|---|---|
| 2022 | -27.0% | -17.6% |
| 2023 | +3.2% | +4.6% |
| 2024 | +5.5% | +12.0% |
| 2025 | +10.9% | +7.2% |
| 2026 | -2.4% | +3.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DSM and MHF good diversifiers for each other?
To a limited degree. At 0.56 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 MHF?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.46 over the last year and 0.61 over 5 years.
Is MHF a good diversifier for DSM?
To a limited degree. At 0.56 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 0.56 mean?
On the −1 to +1 scale, 0.56 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-mhf.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/dsm-vs-mhf/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DSM correlations · MHF correlations
