Brown Forman Correlations

BF5B Stock

EUR 31.92 0.52 1.66%

The current 90-days correlation between Brown Forman and Pernod Ricard SA is 0.19 (i.e., Average 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

Good diversification

The correlation between Brown Forman and DJI is -0.11 (i.e., Good 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.

The ability to find closely correlated positions to Brown Forman could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brown Forman 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 Brown Forman - 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 Brown Forman to buy it.

Moving together with Brown Stock

0.64	GUIA	Diageo plc	Pair Corr
0.65	PER	Pernod Ricard SA	Pair Corr
0.94	CB1A	Constellation Brands	Pair Corr
0.87	RMC	Rmy Cointreau SA	Pair Corr
0.94	6BE	BECLE SAB DE	Pair Corr
0.86	T7W	Treasury Wine Estates	Pair Corr
0.85	BED	Marie Brizard Wine	Pair Corr
0.75	1JU	FATFISH GROUP LTD	Pair Corr
0.87	D7GA	NEL ASA ADR30	Pair Corr

Moving against Brown Stock

0.94	ICK	Industrial and Commercial	Pair Corr
0.89	PJFB	PICO FAR EAST	Pair Corr
0.69	690D	Haier Smart Home	Pair Corr
0.65	IBM	International Business	Pair Corr
0.57	AS7	ANTA Sports Products	Pair Corr
0.47	B5R	Berkeley Energia	Pair Corr
0.4	KGHA	KGHM Polska Miedz	Pair Corr
0.34	HHX	HAMMONIA Schiffsholding	Pair Corr

Related Correlations Analysis

	GUIA	PER	CB1A	BF5B	T6W	RMC	6BE	T7W	HAW	BED
GUIA		0.88	0.64	0.64	0.61	0.86	0.58	0.33	0.5	0.72	GUIA
PER	0.88		0.58	0.65	0.56	0.89	0.51	0.3	0.25	0.64	PER
CB1A	0.64	0.58		0.94	0.62	0.81	0.94	0.84	0.1	0.88	CB1A
BF5B	0.64	0.65	0.94		0.58	0.87	0.94	0.86	0.12	0.85	BF5B
T6W	0.61	0.56	0.62	0.58		0.64	0.55	0.41	0.22	0.6	T6W
RMC	0.86	0.89	0.81	0.87	0.64		0.77	0.59	0.22	0.82	RMC
6BE	0.58	0.51	0.94	0.94	0.55	0.77		0.83	0.13	0.87	6BE
T7W	0.33	0.3	0.84	0.86	0.41	0.59	0.83		-0.03	0.65	T7W
HAW	0.5	0.25	0.1	0.12	0.22	0.22	0.13	-0.03		0.14	HAW
BED	0.72	0.64	0.88	0.85	0.6	0.82	0.87	0.65	0.14		BED
	GUIA	PER	CB1A	BF5B	T6W	RMC	6BE	T7W	HAW	BED

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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

BF5B	+ 0.94	CB1A
6BE	+ 0.94	CB1A
6BE	+ 0.94	BF5B
RMC	+ 0.89	PER
PER	+ 0.88	GUIA
BED	+ 0.88	CB1A

High negative correlations

HAW

- 0.03

T7W

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
GUIA	1.51	(0.09)	0.00	2.45	0.00	0.00	3.60	(2.81)	9.19
PER	1.32	(0.05)	0.00	(0.17)	0.00	0.00	2.85	(2.83)	7.54
CB1A	1.55	(0.43)	0.00	(10.07)	0.00	0.00	2.14	(3.65)	19.13
BF5B	1.90	(0.26)	0.00	0.68	0.00	0.00	4.38	(3.93)	13.24
T6W	2.28	0.04	0.01	(0.47)	2.86	(3.64)	5.41	(5.00)	17.60
RMC	1.64	(0.17)	0.00	(0.52)	0.00	0.00	4.32	(3.58)	11.60
6BE	2.71	(0.17)	0.00	(0.14)	0.00	0.00	6.06	(6.45)	17.26
T7W	1.21	(0.06)	0.00	(3.95)	0.00	0.00	2.49	(2.43)	9.59
HAW	1.77	0.13	0.06	(0.43)	2.11	(2.16)	5.29	(3.27)	16.54
BED	1.09	(0.25)	0.00	0.56	0.00	0.00	1.49	(2.65)	9.10

Be your own money manager

Our tools can tell you how much better you can do entering a position in Brown Forman 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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Brown Forman Corporate Management

Elected by the shareholders, the Brown Forman's board of directors comprises two types of representatives: Brown Forman inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Brown. The board's role is to monitor Brown Forman's management team and ensure that shareholders' interests are well served. Brown Forman's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Brown Forman's outside directors are responsible for providing unbiased perspectives on the board's policies.

Lawson Whiting	Pres CEO	Profile
Dan Muraski	Chief Officer	Profile
Marshall Farrer	Pres VP	Profile
Campbell Brown	Ex Chairman	Profile
Matthew Hamel	Exec Counsel	Profile
Thomas Hinrichs	VP International	Profile
Leanne Cunningham	VP CFO	Profile

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