Correlation Between Vintage Wine and Brown Forman
Can any of the company-specific risk be diversified away by investing in both Vintage Wine and Brown Forman at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vintage Wine and Brown Forman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vintage Wine Estates and Brown Forman, you can compare the effects of market volatilities on Vintage Wine and Brown Forman and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vintage Wine with a short position of Brown Forman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vintage Wine and Brown Forman.
Diversification Opportunities for Vintage Wine and Brown Forman
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vintage and Brown is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vintage Wine Estates and Brown Forman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brown Forman and Vintage Wine is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vintage Wine Estates are associated (or correlated) with Brown Forman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brown Forman has no effect on the direction of Vintage Wine i.e., Vintage Wine and Brown Forman go up and down completely randomly.
Pair Corralation between Vintage Wine and Brown Forman
If you would invest (100.00) in Vintage Wine Estates on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Vintage Wine Estates or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Vintage Wine Estates vs. Brown Forman
Performance |
| Timeline |
| Vintage Wine Estates |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Brown Forman |
Vintage Wine and Brown Forman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vintage Wine and Brown Forman
The main advantage of trading using opposite Vintage Wine and Brown Forman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vintage Wine position performs unexpectedly, Brown Forman can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brown Forman will offset losses from the drop in Brown Forman's long position.| Vintage Wine vs. MGP Ingredients | Vintage Wine vs. Brown Forman | Vintage Wine vs. Diageo PLC ADR | Vintage Wine vs. Brown Forman |
| Brown Forman vs. MGP Ingredients | Brown Forman vs. Diageo PLC ADR | Brown Forman vs. Constellation Brands Class | Brown Forman vs. Pernod Ricard SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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