RFM vs RFMZ: Correlation
How closely do RiverNorth Flexible Municipal Income Fund, Inc. (RFM) and RiverNorth Flexible Municipal Income Fund II, Inc. (RFMZ) trade together? Their weekly returns over three years give a correlation of 0.84, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RFM and RFMZ?
Across a 3-year window, the weekly returns of RFM and RFMZ correlate at 0.84, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.78) sits close to the 3-year figure. Stretching to 5 years gives 0.77, with an annualized covariance of 134.4 %².
Few assets follow RFM as closely as RFMZ, which ranks #1 of 12 tracked partners. Twelve-month performance is nearly a tie, at +12.8% for RFM and +12.7% for RFMZ.
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.
RFM vs RFMZ: side by side
| RFM (RiverNorth Flexible Municipal Income Fund, Inc.) | RFMZ (RiverNorth Flexible Municipal Income Fund II, Inc.) | |
|---|---|---|
| 1-year return | +12.8% | +12.7% |
| 5-year return | -7.4% | -11.3% |
| Volatility (ann.) | 12.0% | 13.3% |
| Beta vs S&P 500 | 0.38 | 0.36 |
| Max drawdown (3Y) | -16.0% | -16.8% |
| Market cap | $0.1B | $0.3B |
| P/E (trailing) | 159.2 | 217.8 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | RFM | RFMZ |
|---|---|---|
| 2022 | -22.9% | -26.4% |
| 2023 | +9.3% | +4.6% |
| 2024 | +3.2% | +10.1% |
| 2025 | +1.6% | +2.2% |
| 2026 | +7.7% | +8.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RFM and RFMZ good diversifiers for each other?
No: a correlation of 0.84 means RFM and RFMZ tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between RFM and RFMZ?
Using weekly returns as of 2026-08-27: 0.84 over 3 years, with 0.78 over the last year and 0.77 over 5 years.
Is RFMZ a good diversifier for RFM?
No: a correlation of 0.84 means RFM and RFMZ tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.84 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/rfm-vs-rfmz.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/rfm-vs-rfmz/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: RFM correlations · RFMZ correlations
