FRME vs OSBC: Correlation
How closely do First Merchants Corporation (FRME) and Old Second Bancorp, Inc. (OSBC) trade together? Their weekly returns over three years give a correlation of 0.83, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FRME and OSBC?
On 3 years of weekly data the FRME/OSBC correlation comes out at 0.83, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.74 over 1 year against 0.83 over 3. The 5-year figure is 0.75, and annualized covariance runs at 661.6 %².
Within FRME's tracked universe of 26 assets, OSBC comes in at #15 by 3-year correlation. The last year tells two different stories: OSBC led by 33.9 percentage points, +3.5% for FRME against +37.4% for OSBC.
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 OSBC: side by side
| FRME (First Merchants Corporation) | OSBC (Old Second Bancorp, Inc.) | |
|---|---|---|
| 1-year return | +3.5% | +37.4% |
| 5-year return | +22.0% | +130.4% |
| Volatility (ann.) | 29.8% | 26.8% |
| Beta vs S&P 500 | 0.78 | 0.67 |
| Max drawdown (3Y) | -23.9% | -25.5% |
| Market cap | $2.6B | $1.3B |
| P/E (trailing) | 13.4 | 14.6 |
| Dividend yield | 3.48% | 1.07% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FRME | OSBC |
|---|---|---|
| 2022 | +1.1% | +29.2% |
| 2023 | -5.8% | -2.4% |
| 2024 | +11.8% | +16.7% |
| 2025 | -2.5% | +11.3% |
| 2026 | +13.3% | +30.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FRME and OSBC good diversifiers for each other?
Not really. At 0.83, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between FRME and OSBC?
The FRME/OSBC correlation stands at 0.83 on a 3-year window (1 year: 0.74, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is OSBC a good diversifier for FRME?
Not really. At 0.83, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.83 mean?
A reading of 0.83 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/frme-vs-osbc.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/frme-vs-osbc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FRME correlations · OSBC correlations
