Diageo PLC Correlations

DEO
 Stock
  

USD 186.55  4.84  2.53%   

The correlation of Diageo PLC is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. 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. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
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The ability to find closely correlated positions to Diageo PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Diageo PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Diageo PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Diageo PLC ADR to buy it.

Moving together with Diageo PLC

+0.87BF-BBrown-FormanPairCorr
+0.83MGPIMGP IngredientsPairCorr
+0.82STZConstellation BrandsPairCorr
+0.78BUDAnheuser Busch InbevPairCorr
+0.87CELHCelsius HoldingsPairCorr
+0.76CHDChurch DwightPairCorr

Related Correlations

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Correlation Matchups

The Correlation Coefficient is a useful tool to identify correlated or non-correlated securities, which is essential in developing a diversified portfolio. It tells us the relationship between two positions you have in your portfolio or considering acquiring. Over a given time period, the two securities movetogether 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   
BGSAQB
ACUAQB
AGFSAVO
ACUBGS
ACIAVO
ACIALCO
  
High negative correlations   
BGSAGFS
AGFSAQB
BGSAVO
ACUAGFS
AVOAQB
AGFSAGRO

Diageo PLC Competition Risk-Adjusted Indicators

Nowadays, there is a big difference between Diageo Stock performing well and Diageo PLC company doing well compared to the competition. There are way too many exceptions to the normal that investors can tell for sure what's good or bad unless they analyze Diageo PLC's multiple risk-adjusted performance indicators. 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
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
ABEV 2.12  0.06  0.01  0.18  2.57  0.0117 (2.32)  4.45 (3.74)  16.88 
AQB 3.74 (0.88)  0.00 (1.64)  0.00 (0.19)  0.00  8.33 (7.69)  23.07 
AVO 1.34 (0.11)  0.00 (0.05)  0.00 (0.08)  0.00  2.84 (2.84)  7.98 
ALCO 1.56 (0.22)  0.00 (0.16)  0.00 (0.11)  0.00  2.57 (3.42)  10.63 
AGRO 2.06 (0.25)  0.00 (0.32)  0.00 (0.11)  0.00  3.88 (5.81)  13.86 
ACI 1.59 (0.03) (0.02)  0.06  2.19 (0.0181) (1.75)  3.34 (3.29)  19.96 
AGFS 3.28  1.17  0.43  3.56  1.66  0.12 (4.45)  5.73 (4.29)  73.85 
BGS 2.41 (0.78)  0.00 (0.83)  0.00 (0.27)  0.00  4.59 (4.60)  13.02 
ACU 2.07 (0.28)  0.00 (0.72)  0.00 (0.12)  0.00  3.93 (3.74)  13.46 

Be your own money manager

Our tools can tell you how much better you can do entering a position in Diageo PLC without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Diageo PLC Corporate Directors

Diageo PLC corporate directors refer to members of a Diageo PLC board of directors. The board of directors generally takes responsibility for the Diageo PLC's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Diageo PLC's board members must vote for the resolution. The Diageo PLC board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
Melissa Bethell - Non-Executive Independent DirectorProfile
Emma Walmsley - Non-Executive DirectorProfile
John Manzoni - Non-Executive Independent DirectorProfile
Victoria Frame - Group Strategy DirectorProfile

Invested in Diageo PLC ADR?

The danger of trading Diageo PLC ADR is mainly related to its market volatility and company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Diageo PLC is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Diageo PLC. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Diageo PLC ADR is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Continue to Investing Opportunities. Note that the Diageo PLC ADR information on this page should be used as a complementary analysis to other Diageo PLC's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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When running Diageo PLC ADR 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 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.
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Is Diageo PLC's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diageo PLC. If investors know Diageo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diageo PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.21
Market Capitalization
108.2 B
Quarterly Revenue Growth YOY
0.28
Return On Assets
0.0878
Return On Equity
0.37
The market value of Diageo PLC ADR is measured differently than its book value, which is the value of Diageo that is recorded on the company's balance sheet. Investors also form their own opinion of Diageo PLC's value that differs from its market value or its book value, called intrinsic value, which is Diageo PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diageo PLC's market value can be influenced by many factors that don't directly affect Diageo PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Diageo PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine Diageo PLC value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diageo PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.