RFMZ vs RMM: Correlation
Measured on weekly returns over the past three years, RiverNorth Flexible Municipal Income Fund II, Inc. (RFMZ) and RiverNorth Managed Duration Municipal Income Fund, Inc. (RMM) carry a correlation of 0.78, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RFMZ and RMM?
Over the past 3 years, RFMZ and RMM moved with a correlation of 0.78, which is strong. The relationship has been stable: the 1-year correlation (0.76) sits close to the 3-year figure. Over 5 years the correlation is 0.69, and the annualized covariance of weekly returns is 148.3 %².
RMM is one of the assets that tracks RFMZ most closely: it ranks #3 out of the 11 assets we track against RFMZ. Twelve-month performance is nearly a tie, at +12.7% for RFMZ and +14.2% for RMM.
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.
RFMZ vs RMM: side by side
| RFMZ (RiverNorth Flexible Municipal Income Fund II, Inc.) | RMM (RiverNorth Managed Duration Municipal Income Fund, Inc.) | |
|---|---|---|
| 1-year return | +12.7% | +14.2% |
| 5-year return | -11.3% | -4.9% |
| Volatility (ann.) | 13.3% | 14.3% |
| Beta vs S&P 500 | 0.36 | 0.41 |
| Max drawdown (3Y) | -16.8% | -18.8% |
| Market cap | $0.3B | $0.3B |
| P/E (trailing) | 217.8 | 74.7 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | RFMZ | RMM |
|---|---|---|
| 2022 | -26.4% | -23.4% |
| 2023 | +4.6% | +5.9% |
| 2024 | +10.1% | +9.3% |
| 2025 | +2.2% | +2.1% |
| 2026 | +8.4% | +9.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RFMZ and RMM good diversifiers for each other?
Somewhat, no more. With 0.78 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between RFMZ and RMM?
The RFMZ/RMM correlation stands at 0.78 on a 3-year window (1 year: 0.76, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is RMM a good diversifier for RFMZ?
Somewhat, no more. With 0.78 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.78 mean?
A reading of 0.78 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/rfmz-vs-rmm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/rfmz-vs-rmm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: RFMZ correlations · RMM correlations
