Relationship between Stock Performnace and ASX - Report
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Added on 2020-06-03
Relationship between Stock Performnace and ASX - Report
Added on 2020-06-03
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TABLE OF CONTENTS(1).....................................................................................................................................................1(a) Performance of portfolio........................................................................................................1(b) Comment on performance of portfolio relative to other students..........................................1(2) Relationship between stock performnace and ASX...................................................................1(3)Foreign stock analysis.................................................................................................................2(a)Stock price movements and change in index value.................................................................2(b) Relationship between foreign stocks return...........................................................................4© Relationship between foreign stocks and ASX.......................................................................5(4)Relationship of Australian companies stock price performance with foreign exchange rate.....5(5) Relationshio between foreign company stock price and there nation currency in AUD...........6REFERENCES................................................................................................................................7APPENDIX......................................................................................................................................8Figure 1ASX and stocks performance.............................................................................................2Figure 2AirNewzealand and index performance.............................................................................3Figure 3AirXpanders and index performance.................................................................................3Figure 4Foreign companies stocks performnace.............................................................................4Figure 5ASX and Australia firms stocks performance....................................................................5
(1)(a) Performance of portfolioAttached in appendix(b) Comment on performance of portfolio relative to other studentsIt is expected that relative to other students portfolio give good performance becauseoverall it generate return of 4% which is higher then same of market which is -0.1%. Marketconditions and company conditions both are responsible for stock performance. However, if bothare compared then it can be said that it is the company condition which give boost to firms shareprice in the portfolio. It can be observed that Beach energy ltd shares performed extremely wellbecause price of crude oil increase in the market which create positive sentiments amonginvestors. All these things lead to huge price plunge in firm shares. Begga Chesse to some extentperform well but some of factors like decline in export impede its stock growth rate in themarket. However, hope of investors that acquisition deal will benefit company lead to rapidincrease in company shares in 2017. Hence, company condition again lead to elevation incompany stock performance. Air Newzealand perform moderaely but due to some operationalproblems it loose investors confidence and this lead to decline in stock performace. Hence,companies performance were major reason behind strong portfolio performance.(2) Relationship between stock performnace and ASX12345678910111213141516171819202122232425262728293031323334353637383940414243-6%-4%-2%0%2%4%6%8%10%Chart TitleBegga CheeseBeach Energy Limited (BPT.AX)ASXFigure 1ASX and stocks performance1 | P a g e
InterpretationThere is coorelation between both companies stocks which are Begga Chesse and BeachEnergy Limited and ASX performance. It can be said that in same line both companies stocks aremoving. However, intensity of movement of stocks of Begga Chesse and Beach Energy Limitedis not same if compared with ASX and this reflect that both index and companies stocks aremoving in same direction but magnitude of movement is not similar in case of these variables.This thing is proved from the fact that value of coorelation between Begga Chesse and ASX is0.02 which is very low and it can be said that coorelation value is just nearby to 0 and bothvariables move in same direction but in terms of percentage change in single day any moderatecoorelation is not observed between both of them. On other hand, in case of ASX and Beachenergy limited coorelation value is 0.10 which is less then 0.50 and again indicate that there islow coorelation between stock and index in terms of movement. However, both variables movein same direction but at different magnitude. Thus, it can be said that both companies stocks andindex are not highly related to each other. (3)Foreign stock analysis(a)Stock price movements and change in index value135791113151719212325272931333537394143-4%-3%-2%-1%0%1%2%3%4%Chart TitleAirNewzealandNZXFigure 2AirNewzealand and index performance2 | P a g e
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