FMN vs VXZ: Correlation
Measured on weekly returns over the past three years, Federated Hermes Premier Municipal Income Fund (FMN) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.32, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FMN and VXZ?
Over the past 3 years, FMN and VXZ moved with a correlation of -0.32, which is negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.49 versus -0.32 over 3 years. Over 5 years the correlation is -0.28, and the annualized covariance of weekly returns is -90.0 %².
Out of 13 assets tracked against FMN, VXZ lands near the bottom at #13. Correlation aside, the last 12 months split them widely, with FMN ahead by 25.6 points (+9.5% versus -16.1%). One caveat on sizing: VXZ is 2.3 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 VXZ: side by side
| FMN (Federated Hermes Premier Municipal Income Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +9.5% | -16.1% |
| 5-year return | -12.8% | -53.1% |
| Volatility (ann.) | 11.1% | 25.6% |
| Beta vs S&P 500 | 0.24 | -1.31 |
| Max drawdown (3Y) | -16.3% | -36.4% |
| Market cap | $0.1B | – |
| P/E (trailing) | 9.7 | – |
| Dividend yield | 4.57% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FMN | VXZ |
|---|---|---|
| 2022 | -26.7% | +0.5% |
| 2023 | +9.2% | -44.0% |
| 2024 | +3.2% | -12.7% |
| 2025 | +6.8% | +5.7% |
| 2026 | +2.9% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FMN and VXZ good diversifiers for each other?
Yes: at -0.32, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between FMN and VXZ?
As of 2026-08-27, the correlation of weekly returns between FMN and VXZ is -0.32 over 3 years, -0.49 over 1 year and -0.28 over 5 years.
Is VXZ a good diversifier for FMN?
Yes: at -0.32, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.32 mean?
A reading of -0.32 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/fmn-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fmn-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FMN correlations · VXZ correlations
