FRME vs SRCE: Correlation
How closely do First Merchants Corporation (FRME) and 1st Source Corporation (SRCE) 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 SRCE?
Over the past 3 years, FRME and SRCE moved with a correlation of 0.87, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.82 lands near the 3-year figure. Over 5 years the correlation is 0.82, and the annualized covariance of weekly returns is 663.9 %².
Among the 26 assets we track against FRME, SRCE ranks #10 by 3-year correlation. The last year tells two different stories: SRCE led by 33.5 percentage points, +3.5% for FRME against +37.0% for SRCE.
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 SRCE: side by side
| FRME (First Merchants Corporation) | SRCE (1st Source Corporation) | |
|---|---|---|
| 1-year return | +3.5% | +37.0% |
| 5-year return | +22.0% | +110.2% |
| Volatility (ann.) | 29.8% | 25.5% |
| Beta vs S&P 500 | 0.78 | 0.61 |
| Max drawdown (3Y) | -23.9% | -21.2% |
| Market cap | $2.6B | $2.1B |
| P/E (trailing) | 13.4 | 12.4 |
| Dividend yield | 3.48% | 0.93% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FRME | SRCE |
|---|---|---|
| 2022 | +1.1% | +9.8% |
| 2023 | -5.8% | +6.5% |
| 2024 | +11.8% | +9.0% |
| 2025 | -2.5% | +9.8% |
| 2026 | +13.3% | +40.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FRME and SRCE good diversifiers for each other?
No. With a correlation of 0.87, FRME and SRCE move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between FRME and SRCE?
As of 2026-08-27, the correlation of weekly returns between FRME and SRCE is 0.87 over 3 years, 0.82 over 1 year and 0.82 over 5 years.
Is SRCE a good diversifier for FRME?
No. With a correlation of 0.87, FRME and SRCE move nearly in lockstep, so holding both adds very little diversification.
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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/frme-vs-srce.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/frme-vs-srce/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: FRME correlations · SRCE correlations
