FRME vs HTH: Correlation
How closely do First Merchants Corporation (FRME) and Hilltop Holdings Inc. (HTH) 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 FRME and HTH?
Across a 3-year window, the weekly returns of FRME and HTH correlate at 0.85, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.84) sits close to the 3-year figure. Stretching to 5 years gives 0.66, with an annualized covariance of 611.3 %².
Among the 26 assets we track against FRME, HTH ranks #14 by 3-year correlation. The trailing year gives HTH the advantage: +3.5% versus +11.8%, a 8.3-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.
FRME vs HTH: side by side
| FRME (First Merchants Corporation) | HTH (Hilltop Holdings Inc.) | |
|---|---|---|
| 1-year return | +3.5% | +11.8% |
| 5-year return | +22.0% | +29.0% |
| Volatility (ann.) | 29.8% | 24.1% |
| Beta vs S&P 500 | 0.78 | 0.61 |
| Max drawdown (3Y) | -23.9% | -21.8% |
| Market cap | $2.6B | $2.2B |
| P/E (trailing) | 13.4 | 14.3 |
| Dividend yield | 3.48% | 1.97% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FRME | HTH |
|---|---|---|
| 2022 | +1.1% | -12.9% |
| 2023 | -5.8% | +19.8% |
| 2024 | +11.8% | -16.9% |
| 2025 | -2.5% | +21.3% |
| 2026 | +13.3% | +15.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FRME and HTH good diversifiers for each other?
No: a correlation of 0.85 means FRME and HTH tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between FRME and HTH?
The FRME/HTH correlation stands at 0.85 on a 3-year window (1 year: 0.84, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is HTH a good diversifier for FRME?
No: a correlation of 0.85 means FRME and HTH tend to fall together, which is precisely when diversification is supposed to help.
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
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Related comparisons
Hubs: FRME correlations · HTH correlations
