Diageo PLC Correlations

DEO Stock

USD 108.00 1.56 1.47%

The current 90-days correlation between Diageo PLC ADR and Constellation Brands Class is 0.54 (i.e., Very weak diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Diageo PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Diageo PLC ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Diageo PLC Correlation With Market

Modest diversification

The correlation between Diageo PLC ADR and DJI is 0.22 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Diageo PLC ADR and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Diageo PLC ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.

Moving together with Diageo Stock

0.75	IBG	Innovation Beverage	Pair Corr
0.91	MGPI	MGP Ingredients	Pair Corr
0.76	CASK	Heritage Distilling	Pair Corr
0.77	BG	Bunge Limited	Pair Corr
0.65	EL	Estee Lauder Companies	Pair Corr
0.79	LW	Lamb Weston Holdings	Pair Corr
0.63	DNUT	Krispy Kreme	Pair Corr
0.69	DTCK	Davis Commodities	Pair Corr
0.62	EEIQ	Elite Education Group	Pair Corr

Moving against Diageo Stock

0.86	WVVI	Willamette Valley Earnings Call This Week	Pair Corr
0.84	K	Kellanova Sell-off Trend	Pair Corr
0.82	PM	Philip Morris Intern	Pair Corr
0.75	KO	Coca Cola	Pair Corr
0.71	BJ	BJs Wholesale Club	Pair Corr
0.67	KR	Kroger Company	Pair Corr
0.5	MO	Altria Group	Pair Corr
0.49	IH	Ihuman Inc	Pair Corr
0.32	JZ	Jianzhi Education	Pair Corr
0.81	WYHG	Wing Yip Food	Pair Corr
0.78	YQ	17 Education Technology	Pair Corr
0.78	VSTA	Vasta Platform Potential Growth	Pair Corr
0.77	BRLSW	Borealis Foods	Pair Corr
0.61	FARM	Farmer Bros	Pair Corr
0.56	UG	United Guardian	Pair Corr
0.52	WILC	G Willi Food	Pair Corr
0.39	WAFU	Wah Fu Education	Pair Corr
0.34	YI	111 Inc	Pair Corr

Related Correlations Analysis

	BF-B	MGPI	NAPA	VWE	BF-A	STZ	PRNDY	PDRDF	WVVI
BF-B		0.84	0.0	0.0	1.0	0.92	0.7	0.61	-0.77	BF-B
MGPI	0.84		0.0	0.0	0.85	0.89	0.74	0.71	-0.87	MGPI
NAPA	0.0	0.0		0.0	0.0	0.0	0.0	0.0	0.0	NAPA
VWE	0.0	0.0	0.0		0.0	0.0	0.0	0.0	0.0	VWE
BF-A	1.0	0.85	0.0	0.0		0.91	0.7	0.61	-0.77	BF-A
STZ	0.92	0.89	0.0	0.0	0.91		0.69	0.59	-0.91	STZ
PRNDY	0.7	0.74	0.0	0.0	0.7	0.69		0.86	-0.59	PRNDY
PDRDF	0.61	0.71	0.0	0.0	0.61	0.59	0.86		-0.52	PDRDF
WVVI	-0.77	-0.87	0.0	0.0	-0.77	-0.91	-0.59	-0.52		WVVI
	BF-B	MGPI	NAPA	VWE	BF-A	STZ	PRNDY	PDRDF	WVVI

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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

BF-A	+ 1.0	BF-B
STZ	+ 0.92	BF-B
STZ	+ 0.91	BF-A
STZ	+ 0.89	MGPI
PDRDF	+ 0.86	PRNDY
BF-A	+ 0.85	MGPI

High negative correlations

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

Risk-Adjusted Indicators

There is a big difference between Diageo Stock performing well and Diageo PLC 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 Diageo PLC'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
BF-B	1.72	(0.31)	0.00	(0.61)	0.00	0.00	2.82	(4.14)	15.18
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
VWE	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
STZ	1.49	(0.35)	0.00	(0.55)	0.00	0.00	2.64	(2.81)	17.80
PRNDY	1.41	(0.17)	0.00	0.40	0.00	0.00	2.99	(3.94)	10.26
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

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