Brown Forman Correlations

BF-B Stock

USD 34.92 0.06 0.17%

The current 90-days correlation between Brown Forman and Brown Forman is 0.98 (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

Modest diversification

The correlation between Brown Forman and DJI is 0.21 (i.e., Modest 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

0.76	DEO	Diageo PLC ADR	Pair Corr
0.84	MGPI	MGP Ingredients	Pair Corr
0.72	CASK	Heritage Distilling	Pair Corr
0.72	BG	Bunge Limited	Pair Corr
0.64	CL	Colgate Palmolive	Pair Corr
0.68	LW	Lamb Weston Holdings	Pair Corr

Moving against Brown Stock

0.77	WVVI	Willamette Valley Earnings Call This Week	Pair Corr
0.62	K	Kellanova Sell-off Trend	Pair Corr
0.45	PM	Philip Morris Intern	Pair Corr
0.33	BJ	BJs Wholesale Club	Pair Corr
0.32	KO	Coca Cola	Pair Corr
0.82	UG	United Guardian	Pair Corr
0.73	BRLSW	Borealis Foods	Pair Corr
0.61	YQ	17 Education Technology	Pair Corr
0.54	VSTA	Vasta Platform Potential Growth	Pair Corr
0.54	WYHG	Wing Yip Food	Pair Corr
0.46	EWCZ	European Wax Center	Pair Corr
0.4	WAFU	Wah Fu Education	Pair Corr
0.33	WILC	G Willi Food	Pair Corr

Related Correlations Analysis

	PDRDF	WVVI	MGPI	NAPA	BF-A	DEO	PRNDY	STZ	VWE
PDRDF		-0.52	0.71	0.0	0.61	0.81	0.86	0.59	0.0	PDRDF
WVVI	-0.52		-0.87	0.0	-0.77	-0.86	-0.59	-0.91	0.0	WVVI
MGPI	0.71	-0.87		0.0	0.85	0.91	0.74	0.89	0.0	MGPI
NAPA	0.0	0.0	0.0		0.0	0.0	0.0	0.0	0.0	NAPA
BF-A	0.61	-0.77	0.85	0.0		0.76	0.7	0.91	0.0	BF-A
DEO	0.81	-0.86	0.91	0.0	0.76		0.83	0.87	0.0	DEO
PRNDY	0.86	-0.59	0.74	0.0	0.7	0.83		0.69	0.0	PRNDY
STZ	0.59	-0.91	0.89	0.0	0.91	0.87	0.69		0.0	STZ
VWE	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0		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

DEO	+ 0.91	MGPI
STZ	+ 0.91	BF-A
STZ	+ 0.89	MGPI
STZ	+ 0.87	DEO
PRNDY	+ 0.86	PDRDF
BF-A	+ 0.85	MGPI

High negative correlations

STZ	- 0.91	WVVI
MGPI	- 0.87	WVVI
DEO	- 0.86	WVVI
BF-A	- 0.77	WVVI
PRNDY	- 0.59	WVVI
WVVI	- 0.52	PDRDF

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	2.20	(0.08)	0.00	(1.31)	0.00	0.00	4.49	(5.17)	15.42
WVVI	2.57	0.98	0.38	(94.42)	2.05	(3.20)	7.92	(3.14)	28.43
MGPI	1.84	(0.53)	0.00	(0.92)	0.00	0.00	3.24	(4.39)	12.11
NAPA	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
BF-A	1.57	(0.32)	0.00	(0.64)	0.00	0.00	2.35	(3.78)	15.04
DEO	1.38	(0.20)	0.00	(0.52)	0.00	0.00	2.79	(2.53)	8.99
PRNDY	1.41	(0.17)	0.00	0.40	0.00	0.00	2.99	(3.94)	10.26
STZ	1.49	(0.35)	0.00	(0.55)	0.00	0.00	2.64	(2.81)	17.80
VWE	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

Brown Forman Corporate Management

Mark Bacon	Senior Brands	Profile
Diane Nguyen	Executive Officer	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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