Good point made by Elven-Maiden about Merry being merry. It might sound a bit obvious at first, but when you think about it, it's quite notable that these two are known by two different names (even if Pippin is clearly the more merry one). Having the choice of names between Meriadoc and Merry, and Peregrin and Pippin, allows the hobbits to have two different characters.
The name Peregrin son of Paladin suits the owner to a T once he puts on the sable and silver of a Knight of the Citadel. Likewise, Merry has a tough knight side and a cheery hobbit side. These two seem to grow into their original names towards the end of the story, but always manage to retain some of their childishness. They would certainly have been called Merry and Pip to their closest friends even after becoming famous hobbit captains at the Battle of Bywater.
Aragorn and Strider are the most obvious other dual naming of this kind. The more noble and kingly he becomes throughout the story, the more he is referred to as Aragorn, and later the Lord Aragorn, plus all his 50 other names. Gandalf has dozens of names, as well, which certainly emphasises the fact his personality has many different sides. Gandalf is the least formal-sounding of his many names; when he is referred to as Mithrandir, it somehow makes him seem more respected and lordly. Tolkien was very good with words, like that.
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But Gwindor answered: 'The doom lies in yourself, not in your name'.
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