PML vs VBF: Correlation
How closely do Pimco Municipal Income Fund II (PML) and Invesco Bond Fund (VBF) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PML and VBF?
Across a 3-year window, the weekly returns of PML and VBF correlate at 0.64, strong. Little has changed lately, as the 1-year reading of 0.59 lands near the 3-year figure. Stretching to 5 years gives 0.48, with an annualized covariance of 85.3 %².
Within PML's tracked universe of 18 assets, VBF comes in at #10 by 3-year correlation. Over the last 12 months PML came out ahead by 8.0 percentage points (+8.7% against +0.7%). Risk is not evenly split, since PML carries 1.6 times the volatility of the other side.
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.
PML vs VBF: side by side
| PML (Pimco Municipal Income Fund II) | VBF (Invesco Bond Fund) | |
|---|---|---|
| 1-year return | +8.7% | +0.7% |
| 5-year return | -34.6% | -4.4% |
| Volatility (ann.) | 14.5% | 9.2% |
| Beta vs S&P 500 | 0.30 | 0.19 |
| Max drawdown (3Y) | -21.5% | -11.5% |
| Market cap | – | $0.2B |
| P/E (trailing) | 735.0 | 14.4 |
| Dividend yield | 6.48% | 5.72% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PML | VBF |
|---|---|---|
| 2022 | -34.1% | -17.8% |
| 2023 | -3.0% | +2.3% |
| 2024 | +3.0% | +7.0% |
| 2025 | -0.8% | +5.5% |
| 2026 | +1.7% | -1.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PML and VBF good diversifiers for each other?
To a limited degree. At 0.64 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 PML and VBF?
The PML/VBF correlation stands at 0.64 on a 3-year window (1 year: 0.59, 5 years: 0.48), computed from weekly returns as of 2026-08-27.
Is VBF a good diversifier for PML?
To a limited degree. At 0.64 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 0.64 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/pml-vs-vbf.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/pml-vs-vbf/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PML correlations · VBF correlations
