BCAL vs FRME: Correlation
How closely do California BanCorp (BCAL) and First Merchants Corporation (FRME) trade together? Their weekly returns over three years give a correlation of 0.73, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BCAL and FRME?
Across a 3-year window, the weekly returns of BCAL and FRME correlate at 0.73, strong. The link has loosened recently: the 1-year correlation (0.62) runs below the 3-year figure (0.73). Stretching to 5 years gives 0.57, with an annualized covariance of 576.8 %².
In BCAL's tracked universe of 13 assets, FRME sits right near the top at #1. Their recent paths diverged sharply: over the last 12 months BCAL outperformed by 24.5 percentage points (+28.0% for BCAL against +3.5% for FRME).
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.
BCAL vs FRME: side by side
| BCAL (California BanCorp) | FRME (First Merchants Corporation) | |
|---|---|---|
| 1-year return | +28.0% | +3.5% |
| 5-year return | +52.2% | +22.0% |
| Volatility (ann.) | 26.5% | 29.8% |
| Beta vs S&P 500 | 0.82 | 0.78 |
| Max drawdown (3Y) | -32.3% | -23.9% |
| Market cap | $0.7B | $2.6B |
| P/E (trailing) | 11.6 | 13.4 |
| Dividend yield | 1.40% | 3.48% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BCAL | FRME |
|---|---|---|
| 2022 | +12.3% | +1.1% |
| 2023 | +3.1% | -5.8% |
| 2024 | -4.7% | +11.8% |
| 2025 | +13.5% | -2.5% |
| 2026 | +15.5% | +13.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BCAL and FRME good diversifiers for each other?
Only partially. A correlation of 0.73 means BCAL and FRME share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between BCAL and FRME?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.62 over the last year and 0.57 over 5 years.
Is FRME a good diversifier for BCAL?
Only partially. A correlation of 0.73 means BCAL and FRME share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
A reading of 0.73 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/bcal-vs-frme.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bcal-vs-frme/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BCAL correlations · FRME correlations
