EBC vs FRME: Correlation
Measured on weekly returns over the past three years, Eastern Bankshares, Inc. (EBC) and First Merchants Corporation (FRME) carry a correlation of 0.85, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EBC and FRME?
Across a 3-year window, the weekly returns of EBC and FRME correlate at 0.85, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.75 lands near the 3-year figure. Stretching to 5 years gives 0.78, with an annualized covariance of 714.1 %².
In EBC's tracked universe of 11 assets, FRME sits right near the top at #3. The last year tells two different stories: EBC led by 31.3 percentage points, +34.8% for EBC 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.
EBC vs FRME: side by side
| EBC (Eastern Bankshares, Inc.) | FRME (First Merchants Corporation) | |
|---|---|---|
| 1-year return | +34.8% | +3.5% |
| 5-year return | +30.6% | +22.0% |
| Volatility (ann.) | 28.3% | 29.8% |
| Beta vs S&P 500 | 0.84 | 0.78 |
| Max drawdown (3Y) | -25.0% | -23.9% |
| Market cap | $5.1B | $2.6B |
| P/E (trailing) | 12.5 | 13.4 |
| Dividend yield | 2.41% | 3.48% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EBC | FRME |
|---|---|---|
| 2022 | -12.7% | +1.1% |
| 2023 | -15.0% | -5.8% |
| 2024 | +25.1% | +11.8% |
| 2025 | +10.1% | -2.5% |
| 2026 | +23.3% | +13.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EBC and FRME good diversifiers for each other?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between EBC and FRME?
The EBC/FRME correlation stands at 0.85 on a 3-year window (1 year: 0.75, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is FRME a good diversifier for EBC?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.85 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ebc-vs-frme.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ebc-vs-frme/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EBC correlations · FRME correlations
