RFMZ vs SPY: Correlation
How closely do RiverNorth Flexible Municipal Income Fund II, Inc. (RFMZ) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.39, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RFMZ and SPY?
Across a 3-year window, the weekly returns of RFMZ and SPY correlate at 0.39, moderate. The relationship has been stable: the 1-year correlation (0.41) sits close to the 3-year figure. Stretching to 5 years gives 0.50, with an annualized covariance of 76.1 %².
Among the 11 assets we track against RFMZ, SPY sits near the bottom by co-movement, at rank #7. The trailing year gives SPY the advantage: +12.7% versus +20.6%, a 7.9-point spread.
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 SPY: side by side
| RFMZ (RiverNorth Flexible Municipal Income Fund II, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +12.7% | +20.6% |
| 5-year return | -11.3% | +82.4% |
| Volatility (ann.) | 13.3% | 14.5% |
| Beta vs S&P 500 | 0.36 | 1.00 |
| Max drawdown (3Y) | -16.8% | -18.8% |
| Market cap | $0.3B | – |
| P/E (trailing) | 217.8 | – |
| Dividend yield | 0.00% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | RFMZ | SPY |
|---|---|---|
| 2022 | -26.4% | -18.2% |
| 2023 | +4.6% | +26.2% |
| 2024 | +10.1% | +24.9% |
| 2025 | +2.2% | +17.7% |
| 2026 | +8.4% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RFMZ and SPY good diversifiers for each other?
A fair diversifier. At 0.39, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between RFMZ and SPY?
The RFMZ/SPY correlation stands at 0.39 on a 3-year window (1 year: 0.41, 5 years: 0.50), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for RFMZ?
A fair diversifier. At 0.39, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.39 mean?
On the −1 to +1 scale, 0.39 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.
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Related comparisons
Hubs: RFMZ correlations · SPY correlations
