Diageo Plc Adr Stock Market Value
| DEO Stock | USD 118.65 0.06 0.05% |
| Symbol | Diageo |
Diageo PLC ADR Price To Book Ratio
Is Distillers & Vintners space 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 (0.03) | Dividend Share 1.035 | Earnings Share 6.91 | Revenue Per Share 2.0142 | Quarterly Revenue Growth (0.01) |
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 if Diageo PLC is a good investment 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.
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.
| 08/30/2024 |
| 11/28/2024 |
If you would invest 0.00 in Diageo PLC on August 30, 2024 and sell it all today you would earn a total of 0.00 from holding Diageo PLC ADR or generate 0.0% return on investment in Diageo PLC over 90 days. Diageo PLC is related to or competes with Brown Forman, MGP Ingredients, Duckhorn Portfolio, Brown Forman, Constellation Brands, Pernod Ricard, and Pernod Ricard. Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages More
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 ADR upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.21) | |||
| Maximum Drawdown | 8.81 | |||
| Value At Risk | (2.30) | |||
| Potential Upside | 1.92 |
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 | (0.08) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.40) | |||
| Treynor Ratio | (0.36) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Diageo PLC's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Diageo PLC ADR Backtested Returns
Diageo PLC ADR secures Sharpe Ratio (or Efficiency) of -0.0992, which denotes the company had a -0.0992% return per unit of standard deviation over the last 3 months. Diageo PLC ADR exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Diageo PLC's Standard Deviation of 1.42, coefficient of variation of (872.33), and Mean Deviation of 1.03 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.48, which means possible diversification benefits within a given portfolio. 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 ADR has a negative expected return of -0.14%. Please make sure to confirm Diageo PLC's treynor ratio, and the relationship between the standard deviation and kurtosis , to decide if Diageo PLC ADR performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.83 |
Excellent reverse predictability
Diageo PLC ADR has excellent reverse predictability. Overlapping area represents the amount of predictability between Diageo PLC time series from 30th of August 2024 to 14th of October 2024 and 14th of October 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 Diageo PLC ADR price movement. The serial correlation of -0.83 indicates that around 83.0% of current Diageo PLC price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.83 | |
| Spearman Rank Test | -0.68 | |
| Residual Average | 0.0 | |
| Price Variance | 53.74 |
Diageo PLC ADR 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 ADR.
Regressed Prices |
| Timeline |
Pair Trading with Diageo PLC
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Diageo PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Diageo PLC will appreciate offsetting losses from the drop in the long position's value.Moving against Diageo Stock
| 0.79 | LQR | LQR House Common | PairCorr |
| 0.74 | LVMUY | LVMH Moet Hennessy | PairCorr |
| 0.49 | NAPA | Duckhorn Portfolio Earnings Call This Week | PairCorr |
| 0.44 | BJ | BJs Wholesale Club | PairCorr |
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.
The correlation of Diageo PLC 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 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.
Correlation analysis and pair trading evaluation for Diageo PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Diageo PLC Correlation, Diageo PLC Volatility and Diageo PLC Alpha and Beta module to complement your research on Diageo PLC. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Diageo PLC technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.