FMN vs LEO: Correlation
Federated Hermes Premier Municipal Income Fund (FMN) and BNY Mellon Strategic Municipals, Inc. (LEO) show a very strong relationship: their 3-year correlation of weekly returns is 0.86.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FMN and LEO?
On 3 years of weekly data the FMN/LEO correlation comes out at 0.86, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.90 lands near the 3-year figure. The 5-year figure is 0.75, and annualized covariance runs at 115.5 %².
LEO is one of the assets that tracks FMN most closely: it ranks #1 out of the 13 assets we track against FMN. Neither side won the trailing year by much: +9.5% 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.
FMN vs LEO: side by side
| FMN (Federated Hermes Premier Municipal Income Fund) | LEO (BNY Mellon Strategic Municipals, Inc.) | |
|---|---|---|
| 1-year return | +9.5% | +10.2% |
| 5-year return | -12.8% | -18.0% |
| Volatility (ann.) | 11.1% | 12.2% |
| Beta vs S&P 500 | 0.24 | 0.26 |
| Max drawdown (3Y) | -16.3% | -13.1% |
| Market cap | $0.1B | $0.4B |
| P/E (trailing) | 9.7 | 30.9 |
| Dividend yield | 4.57% | 4.41% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FMN | LEO |
|---|---|---|
| 2022 | -26.7% | -24.1% |
| 2023 | +9.2% | +0.1% |
| 2024 | +3.2% | +6.9% |
| 2025 | +6.8% | +9.9% |
| 2026 | +2.9% | +0.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FMN and LEO good diversifiers for each other?
No. With a correlation of 0.86, FMN and LEO move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between FMN and LEO?
As of 2026-08-27, the correlation of weekly returns between FMN and LEO is 0.86 over 3 years, 0.90 over 1 year and 0.75 over 5 years.
Is LEO a good diversifier for FMN?
No. With a correlation of 0.86, FMN and LEO move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.86 mean?
On the −1 to +1 scale, 0.86 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/fmn-vs-leo.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/fmn-vs-leo/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FMN correlations · LEO correlations
