CHCO vs FRME: Correlation
How closely do City Holding Company (CHCO) and First Merchants Corporation (FRME) trade together? Their weekly returns over three years give a correlation of 0.85, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CHCO and FRME?
On 3 years of weekly data the CHCO/FRME correlation comes out at 0.85, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.73 versus 0.85 over 3 years. The 5-year figure is 0.78, and annualized covariance runs at 523.1 %².
Few assets follow CHCO as closely as FRME, which ranks #3 of 16 tracked partners. The trailing year gives CHCO the advantage: +13.3% versus +3.5%, a 9.8-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.
CHCO vs FRME: side by side
| CHCO (City Holding Company) | FRME (First Merchants Corporation) | |
|---|---|---|
| 1-year return | +13.3% | +3.5% |
| 5-year return | +113.1% | +22.0% |
| Volatility (ann.) | 20.7% | 29.8% |
| Beta vs S&P 500 | 0.45 | 0.78 |
| Max drawdown (3Y) | -18.4% | -23.9% |
| Market cap | $2.0B | $2.6B |
| P/E (trailing) | 15.7 | 13.4 |
| Dividend yield | 2.41% | 3.48% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CHCO | FRME |
|---|---|---|
| 2022 | +17.3% | +1.1% |
| 2023 | +22.0% | -5.8% |
| 2024 | +10.4% | +11.8% |
| 2025 | +3.4% | -2.5% |
| 2026 | +22.6% | +13.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CHCO and FRME good diversifiers for each other?
No. With a correlation of 0.85, CHCO and FRME move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between CHCO and FRME?
The CHCO/FRME correlation stands at 0.85 on a 3-year window (1 year: 0.73, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is FRME a good diversifier for CHCO?
No. With a correlation of 0.85, CHCO and FRME move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.85 mean?
A reading of 0.85 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/chco-vs-frme.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/chco-vs-frme/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CHCO correlations · FRME correlations
