CPF vs FRME: Correlation
Central Pacific Financial Corp New (CPF) and First Merchants Corporation (FRME) show a very strong relationship: their 3-year correlation of weekly returns is 0.86.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CPF and FRME?
Across a 3-year window, the weekly returns of CPF and FRME correlate at 0.86, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.87 over 1 year against 0.86 over 3. Stretching to 5 years gives 0.82, with an annualized covariance of 677.3 %².
By 3-year correlation, FRME places #4 of the 19 assets tracked against CPF. Their recent paths diverged sharply: over the last 12 months CPF outperformed by 20.9 percentage points (+24.4% for CPF 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.
CPF vs FRME: side by side
| CPF (Central Pacific Financial Corp New) | FRME (First Merchants Corporation) | |
|---|---|---|
| 1-year return | +24.4% | +3.5% |
| 5-year return | +85.5% | +22.0% |
| Volatility (ann.) | 26.5% | 29.8% |
| Beta vs S&P 500 | 0.84 | 0.78 |
| Max drawdown (3Y) | -25.2% | -23.9% |
| Market cap | $1.0B | $2.6B |
| P/E (trailing) | 12.2 | 13.4 |
| Dividend yield | 2.97% | 3.48% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CPF | FRME |
|---|---|---|
| 2022 | -24.7% | +1.1% |
| 2023 | +2.9% | -5.8% |
| 2024 | +54.3% | +11.8% |
| 2025 | +11.3% | -2.5% |
| 2026 | +23.5% | +13.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CPF and FRME good diversifiers for each other?
No: a correlation of 0.86 means CPF and FRME tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between CPF and FRME?
As of 2026-08-27, the correlation of weekly returns between CPF and FRME is 0.86 over 3 years, 0.87 over 1 year and 0.82 over 5 years.
Is FRME a good diversifier for CPF?
No: a correlation of 0.86 means CPF and FRME tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.86 mean?
A reading of 0.86 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/cpf-vs-frme.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cpf-vs-frme/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CPF correlations · FRME correlations
