Brown Forman Stock Market Value
| BF-A Stock | USD 41.10 0.23 0.56% |
| Symbol | Brown |
Brown Forman '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 Brown Forman'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 Brown Forman.
| 10/29/2024 |
| 11/28/2024 |
If you would invest 0.00 in Brown Forman on October 29, 2024 and sell it all today you would earn a total of 0.00 from holding Brown Forman or generate 0.0% return on investment in Brown Forman over 30 days. Brown Forman is related to or competes with MGP Ingredients, Diageo PLC, Constellation Brands, Duckhorn Portfolio, Pernod Ricard, Naked Wines, and Naked Wines. Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages worldwi... More
Brown Forman 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 Brown Forman'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 Brown Forman upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.17) | |||
| Maximum Drawdown | 8.75 | |||
| Value At Risk | (2.63) | |||
| Potential Upside | 2.14 |
Brown Forman Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Brown Forman's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Brown Forman's standard deviation. In reality, there are many statistical measures that can use Brown Forman historical prices to predict the future Brown Forman's volatility.| Risk Adjusted Performance | (0.07) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.40) | |||
| Treynor Ratio | (3.00) |
Brown Forman Backtested Returns
Brown Forman secures Sharpe Ratio (or Efficiency) of -0.0932, which signifies that the company had a -0.0932% return per unit of risk over the last 3 months. Brown Forman exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Brown Forman's Mean Deviation of 1.21, standard deviation of 1.61, and Risk Adjusted Performance of (0.07) to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.0532, which signifies not very significant fluctuations relative to the market. As returns on the market increase, Brown Forman's returns are expected to increase less than the market. However, during the bear market, the loss of holding Brown Forman is expected to be smaller as well. At this point, Brown Forman has a negative expected return of -0.15%. Please make sure to confirm Brown Forman's total risk alpha, maximum drawdown, potential upside, as well as the relationship between the treynor ratio and value at risk , to decide if Brown Forman performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.77 |
Almost perfect reverse predictability
Brown Forman has almost perfect reverse predictability. Overlapping area represents the amount of predictability between Brown Forman time series from 29th of October 2024 to 13th of November 2024 and 13th of November 2024 to 28th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Brown Forman price movement. The serial correlation of -0.77 indicates that around 77.0% of current Brown Forman price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.77 | |
| Spearman Rank Test | -0.58 | |
| Residual Average | 0.0 | |
| Price Variance | 0.54 |
Brown Forman lagged returns against current returns
Autocorrelation, which is Brown Forman 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 Brown Forman's stock expected returns. We can calculate the autocorrelation of Brown Forman returns to help us make a trade decision. For example, suppose you find that Brown Forman 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 |
Brown Forman 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 Brown Forman stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Brown Forman stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Brown Forman stock over time.
Current vs Lagged Prices |
| Timeline |
Brown Forman Lagged Returns
When evaluating Brown Forman's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Brown Forman stock have on its future price. Brown Forman 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, Brown Forman autocorrelation shows the relationship between Brown Forman stock current value and its past values and can show if there is a momentum factor associated with investing in Brown Forman.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Other Information on Investing in Brown Stock
Brown Forman financial ratios help investors to determine whether Brown Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Brown with respect to the benefits of owning Brown Forman security.