FHB vs FRME: Correlation
How closely do First Hawaiian, Inc. (FHB) and First Merchants Corporation (FRME) trade together? Their weekly returns over three years give a correlation of 0.88, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FHB and FRME?
Across a 3-year window, the weekly returns of FHB and FRME correlate at 0.88, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.77) runs below the 3-year figure (0.88). Stretching to 5 years gives 0.82, with an annualized covariance of 668.2 %².
Few assets follow FHB as closely as FRME, which ranks #1 of 18 tracked partners. Neither side won the trailing year by much: +3.3% against +3.5%.
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.
FHB vs FRME: side by side
| FHB (First Hawaiian, Inc.) | FRME (First Merchants Corporation) | |
|---|---|---|
| 1-year return | +3.3% | +3.5% |
| 5-year return | +16.4% | +22.0% |
| Volatility (ann.) | 25.6% | 29.8% |
| Beta vs S&P 500 | 0.77 | 0.78 |
| Max drawdown (3Y) | -24.3% | -23.9% |
| Market cap | $3.1B | $2.6B |
| P/E (trailing) | 11.3 | 13.4 |
| Dividend yield | 4.01% | 3.48% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FHB | FRME |
|---|---|---|
| 2022 | -0.9% | +1.1% |
| 2023 | -7.6% | -5.8% |
| 2024 | +18.7% | +11.8% |
| 2025 | +1.6% | -2.5% |
| 2026 | +5.1% | +13.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FHB and FRME good diversifiers for each other?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between FHB and FRME?
The FHB/FRME correlation stands at 0.88 on a 3-year window (1 year: 0.77, 5 years: 0.82), computed from weekly returns as of 2026-08-27.
Is FRME a good diversifier for FHB?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.88 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/fhb-vs-frme.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fhb-vs-frme/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FHB correlations · FRME correlations
