First Merchants Correlations

FRME Stock

USD 43.75 0.21 0.48%

The current 90-days correlation between First Merchants and First Bancorp is 0.91 (i.e., Almost no diversification). The correlation of First Merchants is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

First Merchants Correlation With Market

Poor diversification

The correlation between First Merchants and DJI is 0.72 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Merchants and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First Merchants. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

For information on how to trade First Stock refer to our How to Trade First Stock guide.

Moving together with First Stock

0.98	AX	Axos Financial	Pair Corr
0.97	BY	Byline Bancorp Fiscal Year End 23rd of January 2025	Pair Corr
0.97	PB	Prosperity Bancshares Fiscal Year End 22nd of January 2025	Pair Corr
0.94	RF	Regions Financial Fiscal Year End 17th of January 2025	Pair Corr
0.65	VABK	Virginia National	Pair Corr
0.86	VBNK	VersaBank Normal Trading	Pair Corr
0.9	VBTX	Veritex Holdings Fiscal Year End 28th of January 2025	Pair Corr
0.7	TECTP	Tectonic Financial	Pair Corr
0.7	EBMT	Eagle Bancorp Montana Normal Trading	Pair Corr
0.95	EBTC	Enterprise Bancorp	Pair Corr
0.97	EFSC	Enterprise Financial Fiscal Year End 27th of January 2025	Pair Corr
0.85	EGBN	Eagle Bancorp Fiscal Year End 22nd of January 2025	Pair Corr
0.96	WABC	Westamerica Bancorporation Fiscal Year End 16th of January 2025	Pair Corr
0.79	WAFD	Washington Federal	Pair Corr
0.89	WASH	Washington Trust Bancorp Fiscal Year End 22nd of January 2025	Pair Corr
0.72	BANC-PF	Banc of California	Pair Corr
0.94	EQBK	Equity Bancshares, Fiscal Year End 22nd of January 2025	Pair Corr
0.78	ESSA	ESSA Bancorp	Pair Corr
0.81	EVBN	Evans Bancorp	Pair Corr
0.65	WSBCP	WesBanco	Pair Corr

Moving against First Stock

0.63	CFG-PE	Citizens Financial	Pair Corr
0.56	TFC-PO	Truist Financial	Pair Corr
0.55	TFC-PR	Truist Financial	Pair Corr
0.46	WAFDP	Washington Federal	Pair Corr

Related Correlations Analysis

	HBCP	HTBI	GSBC	BKSC	FNWD	FBNC	IBCP	NBHC	GABC	HBNC
HBCP		0.66	0.88	-0.2	0.36	0.85	0.86	0.95	0.92	0.91	HBCP
HTBI	0.66		0.89	0.08	-0.13	0.85	0.92	0.73	0.83	0.86	HTBI
GSBC	0.88	0.89		-0.06	0.19	0.92	0.96	0.93	0.95	0.95	GSBC
BKSC	-0.2	0.08	-0.06		-0.53	-0.12	-0.07	-0.1	-0.15	-0.09	BKSC
FNWD	0.36	-0.13	0.19	-0.53		0.27	0.15	0.26	0.25	0.16	FNWD
FBNC	0.85	0.85	0.92	-0.12	0.27		0.96	0.86	0.93	0.91	FBNC
IBCP	0.86	0.92	0.96	-0.07	0.15	0.96		0.89	0.97	0.96	IBCP
NBHC	0.95	0.73	0.93	-0.1	0.26	0.86	0.89		0.95	0.95	NBHC
GABC	0.92	0.83	0.95	-0.15	0.25	0.93	0.97	0.95		0.98	GABC
HBNC	0.91	0.86	0.95	-0.09	0.16	0.91	0.96	0.95	0.98		HBNC
	HBCP	HTBI	GSBC	BKSC	FNWD	FBNC	IBCP	NBHC	GABC	HBNC

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

HBNC	+ 0.98	GABC
GABC	+ 0.97	IBCP
IBCP	+ 0.96	GSBC
IBCP	+ 0.96	FBNC
HBNC	+ 0.96	IBCP
NBHC	+ 0.95	HBCP

High negative correlations

FNWD	- 0.53	BKSC
BKSC	- 0.2	HBCP
GABC	- 0.15	BKSC
FNWD	- 0.13	HTBI
FBNC	- 0.12	BKSC
NBHC	- 0.1	BKSC

Risk-Adjusted Indicators

There is a big difference between First Stock performing well and First Merchants Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze First Merchants' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
HBCP	1.59	0.00	0.05	0.13	1.74	(1.87)	3.67	(3.12)	10.19
HTBI	1.43	(0.19)	(0.03)	0.03	1.73	(1.56)	2.87	(3.47)	18.54
GSBC	1.54	(0.14)	0.01	0.07	1.85	(1.64)	3.41	(3.32)	19.09
BKSC	1.36	(0.04)	0.00	0.59	0.00	0.00	2.77	(2.79)	6.92
FNWD	0.97	0.18	0.07	0.79	0.75	(1.20)	2.48	(1.80)	12.55
FBNC	1.53	(0.08)	0.05	0.09	1.54	(1.84)	3.37	(2.51)	16.50
IBCP	1.74	(0.11)	0.03	0.08	1.74	(1.98)	3.84	(2.96)	18.82
NBHC	1.57	(0.07)	0.03	0.09	1.61	(1.85)	2.63	(2.65)	17.62
GABC	1.30	(0.04)	0.05	0.11	1.20	(1.59)	2.72	(2.21)	16.97
HBNC	1.57	(0.01)	0.06	0.12	1.54	(1.85)	4.16	(3.17)	14.62

First Merchants Corporate Management

Michael Stewart	Chief Banking Officer and Executive VP	Profile
John Martin	Chief Credit Officer and Executive VP	Profile
Julie Crabtree	Corporate VP	Profile
Marcos CFA	Chief Officer	Profile
Karen Evens	VP Marketing	Profile

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