FMN vs MHD: Correlation
Measured on weekly returns over the past three years, Federated Hermes Premier Municipal Income Fund (FMN) and Blackrock MuniHoldings Fund, Inc. (MHD) carry a correlation of 0.84, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FMN and MHD?
Across a 3-year window, the weekly returns of FMN and MHD correlate at 0.84, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.84 lands near the 3-year figure. Stretching to 5 years gives 0.76, with an annualized covariance of 108.8 %².
Within FMN's tracked universe of 13 assets, MHD comes in at #5 by 3-year correlation. Twelve-month performance is nearly a tie, at +9.5% for FMN and +10.2% for MHD.
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 MHD: side by side
| FMN (Federated Hermes Premier Municipal Income Fund) | MHD (Blackrock MuniHoldings Fund, Inc.) | |
|---|---|---|
| 1-year return | +9.5% | +10.2% |
| 5-year return | -12.8% | -12.7% |
| Volatility (ann.) | 11.1% | 11.7% |
| Beta vs S&P 500 | 0.24 | 0.26 |
| Max drawdown (3Y) | -16.3% | -13.2% |
| Market cap | $0.1B | – |
| P/E (trailing) | 9.7 | 37.0 |
| Dividend yield | 4.57% | 6.23% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FMN | MHD |
|---|---|---|
| 2022 | -26.7% | -23.7% |
| 2023 | +9.2% | +2.1% |
| 2024 | +3.2% | +3.4% |
| 2025 | +6.8% | +7.1% |
| 2026 | +2.9% | +1.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FMN and MHD good diversifiers for each other?
No: a correlation of 0.84 means FMN and MHD tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between FMN and MHD?
Using weekly returns as of 2026-08-27: 0.84 over 3 years, with 0.84 over the last year and 0.76 over 5 years.
Is MHD a good diversifier for FMN?
No: a correlation of 0.84 means FMN and MHD tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.84 mean?
On the −1 to +1 scale, 0.84 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-mhd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/fmn-vs-mhd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: FMN correlations · MHD correlations
