FRME vs GABC: Correlation
How closely do First Merchants Corporation (FRME) and German American Bancorp, Inc. (GABC) trade together? Their weekly returns over three years give a correlation of 0.87, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FRME and GABC?
Over the past 3 years, FRME and GABC moved with a correlation of 0.87, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.85) sits close to the 3-year figure. Over 5 years the correlation is 0.86, and the annualized covariance of weekly returns is 653.2 %².
By 3-year correlation, GABC places #8 of the 26 assets tracked against FRME. Correlation aside, the last 12 months split them widely, with GABC ahead by 18.0 points (+3.5% versus +21.5%).
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.
FRME vs GABC: side by side
| FRME (First Merchants Corporation) | GABC (German American Bancorp, Inc.) | |
|---|---|---|
| 1-year return | +3.5% | +21.5% |
| 5-year return | +22.0% | +55.3% |
| Volatility (ann.) | 29.8% | 25.1% |
| Beta vs S&P 500 | 0.78 | 0.62 |
| Max drawdown (3Y) | -23.9% | -25.3% |
| Market cap | $2.6B | $1.9B |
| P/E (trailing) | 13.4 | 13.0 |
| Dividend yield | 3.48% | 2.46% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FRME | GABC |
|---|---|---|
| 2022 | +1.1% | -2.0% |
| 2023 | -5.8% | -10.2% |
| 2024 | +11.8% | +27.9% |
| 2025 | -2.5% | +0.3% |
| 2026 | +13.3% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FRME and GABC good diversifiers for each other?
No: a correlation of 0.87 means FRME and GABC tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between FRME and GABC?
Using weekly returns as of 2026-08-27: 0.87 over 3 years, with 0.85 over the last year and 0.86 over 5 years.
Is GABC a good diversifier for FRME?
No: a correlation of 0.87 means FRME and GABC tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.87 mean?
On the −1 to +1 scale, 0.87 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: FRME correlations · GABC correlations
