Brown Forman Correlations

BF-B Stock

USD 46.60 0.49 1.04%

The current 90-days correlation between Brown Forman and Brown Forman is 0.95 (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

Weak diversification

The correlation between Brown Forman and DJI is 0.34 (i.e., Weak 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

0.77	DEO	Diageo PLC ADR	Pair Corr
0.9	LVMUY	LVMH Moet Hennessy	Pair Corr
0.69	K	Kellanova	Pair Corr
0.81	KO	Coca Cola Fiscal Year End 11th of February 2025	Pair Corr
0.72	KR	Kroger Company	Pair Corr
0.64	PG	Procter Gamble	Pair Corr
0.74	PM	Philip Morris Intern Sell-off Trend	Pair Corr
0.86	UG	United Guardian Downward Rally	Pair Corr
0.8	UL	Unilever PLC ADR	Pair Corr
0.85	DOLE	Dole PLC	Pair Corr
0.83	WILC	G Willi Food	Pair Corr

Moving against Brown Stock

0.84	WVVI	Willamette Valley	Pair Corr
0.79	DG	Dollar General Sell-off Trend	Pair Corr
0.73	LQR	LQR House Common	Pair Corr
0.66	EAST	Eastside Distilling	Pair Corr
0.54	BG	Bunge Limited	Pair Corr
0.54	BJ	BJs Wholesale Club	Pair Corr
0.46	NAPA	Duckhorn Portfolio Trending	Pair Corr
0.41	SBEV	Splash Beverage Group	Pair Corr
0.36	EL	Estee Lauder Companies	Pair Corr
0.8	GO	Grocery Outlet Holding	Pair Corr
0.8	EDBL	Edible Garden AG	Pair Corr
0.79	DLTR	Dollar Tree	Pair Corr
0.55	DTCK	Davis Commodities	Pair Corr
0.46	VITL	Vital Farms	Pair Corr
0.39	BRBMF	Big Rock Brewery	Pair Corr
0.31	LW	Lamb Weston Holdings	Pair Corr
0.86	WEST	Westrock Coffee	Pair Corr
0.74	FARM	Farmer Bros	Pair Corr
0.72	FAMI	Farmmi Inc	Pair Corr
0.59	FIZZ	National Beverage Corp	Pair Corr
0.55	ACI	Albertsons Companies Earnings Call This Week	Pair Corr
0.49	AQB	AquaBounty Technologies	Pair Corr

Related Correlations Analysis

	PDRDF	WVVI	MGPI	NAPA	BF-A	DEO	PRNDY	STZ	VWE
PDRDF		-0.56	0.18	-0.34	0.57	0.73	0.76	0.4	-0.25	PDRDF
WVVI	-0.56		-0.28	0.44	-0.74	-0.71	-0.62	-0.31	0.55	WVVI
MGPI	0.18	-0.28		-0.24	0.48	0.12	0.15	-0.41	-0.75	MGPI
NAPA	-0.34	0.44	-0.24		-0.37	-0.36	-0.38	-0.28	0.49	NAPA
BF-A	0.57	-0.74	0.48	-0.37		0.67	0.64	0.25	-0.62	BF-A
DEO	0.73	-0.71	0.12	-0.36	0.67		0.92	0.58	-0.32	DEO
PRNDY	0.76	-0.62	0.15	-0.38	0.64	0.92		0.51	-0.33	PRNDY
STZ	0.4	-0.31	-0.41	-0.28	0.25	0.58	0.51		0.23	STZ
VWE	-0.25	0.55	-0.75	0.49	-0.62	-0.32	-0.33	0.23		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

PRNDY	+ 0.92	DEO
PRNDY	+ 0.76	PDRDF
DEO	+ 0.73	PDRDF
DEO	+ 0.67	BF-A
PRNDY	+ 0.64	BF-A
STZ	+ 0.58	DEO

High negative correlations

VWE	- 0.75	MGPI
BF-A	- 0.74	WVVI
DEO	- 0.71	WVVI
VWE	- 0.62	BF-A
PRNDY	- 0.62	WVVI
WVVI	- 0.56	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	1.61	0.08	0.00	0.48	2.04	(2.00)	4.65	(3.77)	14.45
WVVI	1.61	(0.21)	0.00	(0.49)	0.00	0.00	2.97	(3.24)	9.46
MGPI	1.54	0.08	0.02	0.22	2.04	(1.64)	3.32	(3.48)	13.32
NAPA	3.74	1.30	0.49	(1.09)	1.74	(5.75)	3.46	(4.13)	11.46
BF-A	1.01	0.04	0.00	0.17	1.11	(1.18)	2.07	(1.73)	6.66
DEO	1.17	0.03	0.01	0.12	1.36	(1.28)	2.23	(2.08)	6.66
PRNDY	1.38	(0.01)	(0.02)	0.08	1.47	(1.49)	2.60	(2.36)	8.81
STZ	0.99	(0.13)	0.00	(0.20)	0.00	0.00	1.73	(2.88)	7.41
VWE	17.72	(2.66)	0.00	(2.73)	0.00	0.00	38.89	(40.74)	114.65

Brown Forman Corporate Management

Mark Bacon	Senior Brands	Profile
Diane Nguyen	Places, People	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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