Brown Forman Correlations

BF-B Stock

USD 42.57 1.20 2.90%

The current 90-days correlation between Brown Forman and Brown Forman is 0.96 (i.e., Almost no diversification). The correlation of Brown Forman is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Brown Forman Correlation With Market

Significant diversification

The correlation between Brown Forman and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Brown Forman and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Brown Forman. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Moving together with Brown Stock

0.94	DEO	Diageo PLC ADR	Pair Corr
0.86	EL	Estee Lauder Companies	Pair Corr
0.65	FC	Franklin Covey	Pair Corr
0.77	KO	Coca Cola Aggressive Push	Pair Corr
0.78	UG	United Guardian	Pair Corr
0.71	UL	Unilever PLC ADR	Pair Corr
0.71	VITL	Vital Farms	Pair Corr

Moving against Brown Stock

0.91	MO	Altria Group	Pair Corr
0.75	LQR	LQR House Common	Pair Corr
0.66	LVMUY	LVMH Moet Hennessy	Pair Corr
0.44	PM	Philip Morris Intern	Pair Corr
0.42	TR	Tootsie Roll Industries	Pair Corr
0.41	KR	Kroger Company Earnings Call This Week	Pair Corr
0.4	GO	Grocery Outlet Holding	Pair Corr
0.4	LW	Lamb Weston Holdings Sell-off Trend	Pair Corr
0.37	BJ	BJs Wholesale Club	Pair Corr
0.71	DAR	Darling Ingredients Sell-off Trend	Pair Corr
0.64	FIZZ	National Beverage Corp	Pair Corr
0.64	CHD	Church Dwight	Pair Corr
0.47	CLX	Clorox	Pair Corr
0.45	ACI	Albertsons Companies	Pair Corr
0.41	BRCNF	Burcon NutraScience Corp	Pair Corr
0.41	DDL	Dingdong ADR Downward Rally	Pair Corr
0.4	IMKTA	Ingles Markets Earnings Call Tomorrow	Pair Corr

Related Correlations Analysis

	PDRDF	WVVI	MGPI	NAPA	BF-A	DEO	PRNDY	STZ	VWE
PDRDF		0.64	0.85	-0.68	0.81	0.87	0.97	0.62	0.39	PDRDF
WVVI	0.64		0.8	-0.55	0.48	0.39	0.61	0.26	0.81	WVVI
MGPI	0.85	0.8		-0.79	0.64	0.67	0.86	0.64	0.64	MGPI
NAPA	-0.68	-0.55	-0.79		-0.35	-0.43	-0.73	-0.77	-0.63	NAPA
BF-A	0.81	0.48	0.64	-0.35		0.93	0.82	0.43	0.15	BF-A
DEO	0.87	0.39	0.67	-0.43	0.93		0.9	0.55	0.04	DEO
PRNDY	0.97	0.61	0.86	-0.73	0.82	0.9		0.66	0.36	PRNDY
STZ	0.62	0.26	0.64	-0.77	0.43	0.55	0.66		0.21	STZ
VWE	0.39	0.81	0.64	-0.63	0.15	0.04	0.36	0.21		VWE
	PDRDF	WVVI	MGPI	NAPA	BF-A	DEO	PRNDY	STZ	VWE

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Correlation Matchups

Over a given time period, the two securities move together 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

PRNDY	+ 0.97	PDRDF
DEO	+ 0.93	BF-A
PRNDY	+ 0.9	DEO
DEO	+ 0.87	PDRDF
PRNDY	+ 0.86	MGPI
MGPI	+ 0.85	PDRDF

High negative correlations

NAPA	- 0.79	MGPI
STZ	- 0.77	NAPA
PRNDY	- 0.73	NAPA
NAPA	- 0.68	PDRDF
VWE	- 0.63	NAPA
NAPA	- 0.55	WVVI

Risk-Adjusted Indicators

There is a big difference between Brown Stock performing well and Brown Forman Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Brown Forman's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
PDRDF	2.07	(0.36)	0.00	(0.58)	0.00	0.00	4.89	(5.32)	15.45
WVVI	1.33	(0.12)	0.00	0.68	0.00	0.00	3.28	(2.87)	8.49
MGPI	2.18	(1.06)	0.00	(0.88)	0.00	0.00	2.31	(5.26)	26.71
NAPA	3.21	1.59	0.66	(0.51)	0.63	(4.05)	1.57	(1.96)	103.32
BF-A	1.13	(0.15)	0.00	(2.62)	0.00	0.00	2.07	(2.63)	8.75
DEO	1.04	(0.18)	0.00	(0.22)	0.00	0.00	2.02	(2.30)	8.81
PRNDY	1.42	(0.36)	0.00	(0.98)	0.00	0.00	2.59	(3.17)	11.47
STZ	0.89	0.00	0.00	0.12	0.00	0.00	1.93	(1.46)	7.42
VWE	17.72	(2.92)	0.00	(0.90)	0.00	0.00	38.89	(40.74)	114.65

Brown Forman Corporate Management

Mark Bacon	Senior Brands	Profile
Diane Nguyen	Places, People	Profile
Matthew Hamel	Executive Secretary	Profile
Thomas Hinrichs	Executive International	Profile
Matias Bentel	Executive Officer	Profile
Kirsten Hawley	Places People	Profile

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