Diageo PLC (Germany) Market Value
| GUIA Stock | 98.50 2.50 2.48% |
| Symbol | Diageo |
Diageo PLC 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Diageo PLC's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Diageo PLC.
| 12/13/2024 |
| 03/13/2025 |
If you would invest 0.00 in Diageo PLC on December 13, 2024 and sell it all today you would earn a total of 0.00 from holding Diageo PLC or generate 0.0% return on investment in Diageo PLC over 90 days.
Diageo PLC Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Diageo PLC's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Diageo PLC upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | 0.0244 | |||
| Maximum Drawdown | 8.88 | |||
| Value At Risk | (2.60) | |||
| Potential Upside | 2.52 |
Diageo PLC Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Diageo PLC's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Diageo PLC's standard deviation. In reality, there are many statistical measures that can use Diageo PLC historical prices to predict the future Diageo PLC's volatility.| Risk Adjusted Performance | (0.03) | |||
| Jensen Alpha | (0.08) | |||
| Total Risk Alpha | 0.1622 | |||
| Treynor Ratio | (5.71) |
Diageo PLC Backtested Returns
Diageo PLC secures Sharpe Ratio (or Efficiency) of -0.21, which denotes the company had a -0.21 % return per unit of standard deviation over the last 3 months. Diageo PLC exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Diageo PLC's Standard Deviation of 1.63, coefficient of variation of (2,127), and Mean Deviation of 1.22 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.0152, which means not very significant fluctuations relative to the market. As returns on the market increase, Diageo PLC's returns are expected to increase less than the market. However, during the bear market, the loss of holding Diageo PLC is expected to be smaller as well. At this point, Diageo PLC has a negative expected return of -0.35%. Please make sure to confirm Diageo PLC's coefficient of variation, jensen alpha, and the relationship between the mean deviation and standard deviation , to decide if Diageo PLC performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.68 |
Good predictability
Diageo PLC has good predictability. Overlapping area represents the amount of predictability between Diageo PLC time series from 13th of December 2024 to 27th of January 2025 and 27th of January 2025 to 13th of March 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Diageo PLC price movement. The serial correlation of 0.68 indicates that around 68.0% of current Diageo PLC price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.68 | |
| Spearman Rank Test | 0.51 | |
| Residual Average | 0.0 | |
| Price Variance | 27.62 |
Diageo PLC lagged returns against current returns
Autocorrelation, which is Diageo PLC stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Diageo PLC's stock expected returns. We can calculate the autocorrelation of Diageo PLC returns to help us make a trade decision. For example, suppose you find that Diageo PLC has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Diageo PLC regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Diageo PLC stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Diageo PLC stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Diageo PLC stock over time.
Current vs Lagged Prices |
| Timeline |
Diageo PLC Lagged Returns
When evaluating Diageo PLC's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Diageo PLC stock have on its future price. Diageo PLC autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Diageo PLC autocorrelation shows the relationship between Diageo PLC stock current value and its past values and can show if there is a momentum factor associated with investing in Diageo PLC.
Regressed Prices |
| Timeline |
Thematic Opportunities
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Additional Tools for Diageo Stock Analysis
When running Diageo PLC's price analysis, check to measure Diageo PLC's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Diageo PLC is operating at the current time. Most of Diageo PLC's value examination focuses on studying past and present price action to predict the probability of Diageo PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Diageo PLC's price. Additionally, you may evaluate how the addition of Diageo PLC to your portfolios can decrease your overall portfolio volatility.