First Merchants Correlations

FRMEP Stock

USD 25.37 0.27 1.05%

The current 90-days correlation between First Merchants and Heartland Financial USA is 0.08 (i.e., Significant 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. If the correlation is 0, the equities are not correlated; they are entirely random.

First Merchants Correlation With Market

Weak diversification

The correlation between First Merchants and DJI is 0.34 (i.e., Weak 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 income.

To learn how to invest in First Stock, please use our How to Invest in First Merchants guide.

Moving against First Stock

0.37	WAFD	Washington Federal	Pair Corr
0.37	WAFDP	Washington Federal	Pair Corr

Related Correlations Analysis

	HTLFP	OCFCP	ONBPP	ONBPO	UCBIO
HTLFP		0.44	0.41	0.18	0.0	HTLFP
OCFCP	0.44		0.76	0.57	0.0	OCFCP
ONBPP	0.41	0.76		0.81	0.0	ONBPP
ONBPO	0.18	0.57	0.81		0.0	ONBPO
UCBIO	0.0	0.0	0.0	0.0		UCBIO
	HTLFP	OCFCP	ONBPP	ONBPO	UCBIO

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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

ONBPO	+ 0.81	ONBPP
ONBPP	+ 0.76	OCFCP
ONBPO	+ 0.57	OCFCP
OCFCP	+ 0.44	HTLFP
ONBPP	+ 0.41	HTLFP
ONBPO	+ 0.18	HTLFP

High negative correlations

UCBIO	- 0.0	ONBPO
UCBIO	- 0.0	ONBPP
UCBIO	- 0.0	OCFCP
UCBIO	- 0.0	HTLFP

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
HTLFP	0.33	0.00	0.15	(0.03)	0.44	(0.43)	0.60	(0.99)	3.22
OCFCP	0.19	0.02	0.38	0.35	0.12	(0.24)	0.48	(0.40)	1.12
ONBPP	0.37	0.03	0.13	0.28	0.64	(0.44)	0.92	(0.60)	5.94
ONBPO	0.46	0.02	0.12	0.10	0.65	(0.49)	1.02	(0.81)	4.27
UCBIO	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

First Merchants Corporate Management

Julie Crabtree	Corporate VP	Profile
Michael Rechin	Advisor Director	Profile
Marcos CFA	Chief Officer	Profile
Michael Stewart	President	Profile
Steven Harris	Senior Officer	Profile
John Martin	Executive Officer	Profile
Karen Evens	VP Marketing	Profile

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