First Merchants Correlations

FRMEP
 Stock
  

USD 25.75  0.02  0.08%   

The correlation of First Merchants is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Merchants moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Merchants Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
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The ability to find closely correlated positions to First Merchants could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Merchants when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Merchants - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Merchants Corp to buy it.

Moving together with First Merchants

+0.76HDBHdfc BankPairCorr
+0.66IBNIcici BankPairCorr
+0.69PNCPNC BankPairCorr
+0.71VSTCQVision Technology CorpPairCorr
+0.82ULTAUlta BeautyPairCorr
+0.76ORCLOracle CorpPairCorr

Moving against First Merchants

-0.62AZPNAspen TechnologyPairCorr
-0.53BBDC4BRADESCO PN EJPairCorr

Related Correlations

BBDC4
BBAS3
PNC
PBCRF
BLTS
BBDC4
0.79-0.54-0.32-0.48
BBDC4
BBAS3
0.79-0.36-0.3-0.58
BBAS3
PNC
-0.54-0.360.350.18
PNC
PBCRF
-0.32-0.30.350.06
PBCRF
BLTS
-0.48-0.580.180.06
BLTS
BBDC4
BBAS3
PNC
PBCRF
BLTS
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Correlation Matchups

The Correlation Coefficient is a useful tool to identify correlated or non-correlated securities, which is essential in developing a diversified portfolio. It tells us the relationship between two positions you have in your portfolio or considering acquiring. Over a given time period, the two securities movetogether when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
BBAS3BBDC4
PBCRFPNC
BLTSPNC
BLTSPBCRF
  
High negative correlations   
BLTSBBAS3
PNCBBDC4
BLTSBBDC4
PNCBBAS3
PBCRFBBDC4
PBCRFBBAS3

First Merchants Competition Risk-Adjusted Indicators

Nowadays, there is a big difference between First Stock performing well and First Merchants company doing well compared to the competition. There are way too many exceptions to the normal that investors can tell for sure what's good or bad unless they analyze First Merchants' multiple risk-adjusted performance indicators. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in First Merchants without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Invested in First Merchants Corp?

The danger of trading First Merchants Corp is mainly related to its market volatility and company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of First Merchants is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than First Merchants. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile First Merchants Corp is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Please check Investing Opportunities. Note that the First Merchants Corp information on this page should be used as a complementary analysis to other First Merchants' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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When running First Merchants Corp price analysis, check to measure First Merchants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Merchants is operating at the current time. Most of First Merchants' value examination focuses on studying past and present price action to predict the probability of First Merchants' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move First Merchants' price. Additionally, you may evaluate how the addition of First Merchants to your portfolios can decrease your overall portfolio volatility.
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Is First Merchants' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First Merchants. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First Merchants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.093
Quarterly Revenue Growth YOY
0.28
Return On Assets
0.0121
Return On Equity
0.11
The market value of First Merchants Corp is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Merchants' value that differs from its market value or its book value, called intrinsic value, which is First Merchants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First Merchants' market value can be influenced by many factors that don't directly affect First Merchants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine First Merchants value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Merchants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.