Stock Price Correlation & Currency Fluctuations

This assignment analyzes the correlation between stock price changes and currency fluctuations for two companies: Etherstack plc and Jack-in Group Limited. It investigates how changes in exchange rates, specifically SGD and AUD, affect the stock prices of these companies. The analysis utilizes figures comparing stock prices with historical exchange rate data to demonstrate the correlation. Additionally, references are provided from sources such as OANDA, Yahoo Finance, and academic texts on finance and accounting.

Running Head: Finances
1
Project Report: Finances

Finances
2
Que 1a
A) List of stocks:
Australian Based MNC
Name of company
Ticker
Symbol
Amount of
investment
Price per
share (17
Nov 2017)
Telstra TLS $ 10,000
$
3.47
Woodside
Petroleum WPL $ 10,000
$
30.95
Australian Based MNC
Name of company
Ticker
Symbol
Country where
company is
based
Amount of
investment
Price
per
share
(17
Nov
2017)
Etherstack plc ESK
United
Kingdom
$
10,000
$
0.16
Jack-in Group
Limited JIP Singapore
$
10,000
$
0.10
B) Week Wise stock performance:
Week 1 (17th Nov 2017)
No.
Name of
company
Stock price at
end of the
week
% change
in stock
price Primary Reason
1 Telstra $ 3.47
2
Woodside
Petroleum $ 30.95
3 Etherstack plc $ 0.16
4
Jack-in Group
Limited $ 0.10
Week 2 (24th Nov 2017)

Finances
3
No.
Name of
company
Stock price at
end of the
week
% change
in stock
price Primary Reason
1 Telstra $ 3.48 0.29%
Slightly changes have
taken place into the stock
price of the company.
2
Woodside
Petroleum $ 31.52 1.84%
The stock price of company
has been enhanced due to
positive changes into the
industry.
3 Etherstack plc $ 0.12 -25.00%
Stock price of the company
has been lowered due to
huge losses (Yahoo
Finance, 2018).
4
Jack-in Group
Limited $ 0.11 10.00%
Stock price of the company
has been slightly enhanced.
Week 3 (1st Dec 2017)
No.
Name of
company
Stock price at
end of the
week
% change
in stock
price Primary Reason
1 Telstra $ 3.42 -1.72%
The stock price of company
has been enhanced due to
positive changes into the
industry.
2
Woodside
Petroleum $ 31.38 -0.44%
Stock price of the company
has been slightly decreased.
3 Etherstack plc $ 0.12 0.00%
the stock price of the
company has not been
changed from last week
price.
4
Jack-in Group
Limited $ 0.11 0.00%
the stock price of the
company has not been
changed from last week
price (Yahoo Finance,
2018).

Finances
4
Week 4 (8th Dec 2017)
No.
Name of
company
Stock price at
end of the
week
% change
in stock
price Primary Reason
1 Telstra $ 3.69 7.89%
Annual report of the
company has been
announced and a good
dividend has been given.
2
Woodside
Petroleum $ 31.56 0.57%
Stock price of the company
has been slightly enhanced.
3 Etherstack plc $ 0.12 0.00%
the stock price of the
company has not been
changed from last week
price (Yahoo Finance,
2018).
4
Jack-in Group
Limited $ 0.11 0.00%
the stock price of the
company has not been
changed from last week
price
Week 5 (15th Dec 2017)
No.
Name of
company
Stock price at
end of the
week
% change
in stock
price Primary Reason
1 Telstra $ 3.69 0.00%
the stock price of the
company has not been
changed from last week
price
2
Woodside
Petroleum $ 31.87 0.98%
Stock price of the company
has been slightly enhanced.
3 Etherstack plc $ 0.12 0.00%
the stock price of the
company has not been
changed from last week
price

Finances
5
4
Jack-in Group
Limited $ 0.11 0.00%
the stock price of the
company has not been
changed from last week
price
Week 6 (22nd Dec 2017)
No.
Name of
company
Stock price at
end of the
week
% change
in stock
price Primary Reason
1 Telstra $ 3.66 -0.81%
Slightly changes have
taken place into the stock
price of the company.
2
Woodside
Petroleum $ 32.73 2.70% Continuation effect
3 Etherstack plc $ 0.11 -8.33%
Competition level of the
company is too weak
(Yahoo Finance, 2018).
4
Jack-in Group
Limited $ 0.10 -9.09%
Competition level of the
company is too weak.
Week 7 (29th Dec 2017)
No.
Name of
company
Stock price at
end of the
week
% change
in stock
price Primary Reason
1 Telstra $ 3.63 -0.82%
Due to the new project of
rivalry company, stock
price of the company has
been lowered.
2
Woodside
Petroleum $ 33.08 1.07% Continuation effect
3 Etherstack plc $ 0.09 -18.18%
Competition level of the
company is too weak.
4
Jack-in Group
Limited $ 0.10 0.00%
the stock price of the
company has not been
changed from last week
price

Finances
6
Week 8 (5th Jan 2018)
No.
Name of
company
Stock price at
end of the
week
% change
in stock
price Primary Reason
1 Telstra $ 3.73 2.75%
Dividend amount has been
announced by the
company.
2
Woodside
Petroleum $ 34.57 4.50%
Continuation effect (Yahoo
Finance, 2018).
3 Etherstack plc $ 0.09 0.00%
the stock price of the
company has not been
changed from last week
price
4
Jack-in Group
Limited $ 0.08 -20.00%
Competition level of the
company is too weak.
Week 9 (12th Jan 2018)
No.
Name of
company
Stock price at
end of the
week
% change
in stock
price Primary Reason
1 Telstra $ 3.74 0.27% Continuation effect
2
Woodside
Petroleum $ 34.48 -0.26%
Stock price of the company
has been slightly decreased.
3 Etherstack plc $ 0.10 11.11%
New project has helped the
company to enhance the
price.
4
Jack-in Group
Limited $ 0.08 0.00%
the stock price of the
company has not been
changed from last week
price
Week 10 (19th Jan 2018)
No.
Name of
company
Stock price at
end of the
week
% change
in stock
price Primary Reason

Finances
7
1 Telstra $ 3.79 1.34%
Huge demand in the market
has enhanced the stock
price of the company.
2
Woodside
Petroleum $ 34.24 -0.70% Continuation effect.
3 Etherstack plc $ 0.11 10.00%
Continuation effect (Yahoo
Finance, 2018).
4
Jack-in Group
Limited $ 0.08 0.00%
the stock price of the
company has not been
changed from last week
price
Que 1b
Que 2
Telstra Vs ASX:
According to the Figure 1 which has been given below, it has been found that the
stock price of the company, Telstra limited is quite fluctuate in nature. On the other hand, the
stock price of Australian stock exchange is quite stable in nature. It explains that the stock
price of ASX does not impact on the stock price of Telstra Limited. Further, it explains that
the Telstra limited is an individual stock which is driven by the internal performance of the
company (David, 2011).

Finances
8
Figure 1: Telstra Vs ASX 200
(Yahoo Finance, 2018)
Woodside petroleum Vs ASX:
According to the Figure 2 which has been given below, it has been found that the
stock price of the company, Woodside petroleum is quite stable in nature. On the other hand,
the stock price of Australian stock exchange is also stable in nature. It explains that the stock
price of ASX makes an impact on the stock price of Woodside petroleum Limited. Further, it
explains that the Woodside petroleum limited is one of the important stock of ASX and it
directly impacts on the stock price of AXJO.
Figure 2: Woodside Vs ASX

Finances
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(Yahoo Finance, 2018)
Que 3a
ESK Vs LSE:
According to the Figure 3 which has been given below, it has been found that the
stock price of the company, Etherstack plc is quite fluctuating in nature. On the other hand,
the stock price of London stock exchange is quite stable in nature and does not fluctuating
much. It explains that the stock price of LSE does not impact on the stock price of Etherstack
plc Davies and Crawford, 2011). Further, it explains that the Etherstack plc is an individual
stock which is driven by the internal performance and the activities of the company.
Figure 2: ESK Vs LSE
(Yahoo Finance, 2018)
JIP Vs STI:
According to the Figure 4 which has been given below, it has been found that the
stock price of the company, Jack-in Group Limited is quite fluctuating in nature. On the other
hand, the stock price of Singapore stock exchange is quite stable in nature and does not
fluctuating much. It explains that the stock price of STI does not impact on the stock price of
Jack-in Group Limited (Deegan, 2013). Further, it explains that the Jack-in Group Limited is
an individual stock which is driven by the internal performance and the activities of the
company.

Finances
10
Figure 4: JIP Vs STI
(Yahoo Finance, 2018)
Que 3b
ESK Vs JIP:
According to the Figure 5 which has been given below, it has been found that the
stock price of the company, Jack-in Group Limited is quite fluctuating in nature. On the other
hand, the stock price of Etherstack plc is also fluctuating in nature. It explains that the
correlation of both the stock is quite higher. Further, it explains that the Jack-in Group
Limited and Etherstack plc’s stock price are trending in the same way.
Figure 5: ESK Vs JIP
(Yahoo Finance, 2018)

Finances
11
Que 3c
ESK Vs ASX:
According to the Figure 6 which has been given below, it has been found that the
stock price of the company, Etherstack plc is quite fluctuating in nature. On the other hand,
the stock price of Australian stock exchange is quite stable in nature and does not fluctuating
much. It explains that the stock price of AXJO does not impact on the stock price of
Etherstack plc. Further, it explains that the Etherstack plc is an individual stock which is
driven by the internal performance and the activities of the company (Bromwich and
Bhimani, 2005).
Figure 6: ESK Vs ASX
(Yahoo Finance, 2018)
JIP Vs ASX:
According to the Figure 7 which has been given below, it has been found that the
stock price of the company, Jack-in Group Limited is quite fluctuating in nature. On the other
hand, the stock price of Australian stock exchange is quite stable in nature and does not
fluctuating much. It explains that the stock price of AXJO does not impact on the stock price
of Jack-in Group Limited (Procházka, 2017). Further, it explains that the Jack-in Group
Limited is an individual stock which is driven by the internal performance and the activities
of the company

Finances
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Figure 7: JIP Vs ASX
(Yahoo Finance, 2018)
Que 4
a) Telstra Vs Exchange rates:
Further, the currency price changes in USD and AUD has been evaluated and it has
been found that the changes in the currency prices are stable and does not express about huge
changes into the price. At the same time, the stock price of the Telstra limited has been
enhanced in first two weeks and then after 2 weeks, the stock price of the company has been
stable. Currently, the changes into the currency are highly correlated with the stock price of
the company. The correlation could be analyzed through figure 8.

Finances
13
Figure 8: Telstra Vs Exchange rates
(Yahoo Finance, 2018)
b) Woodside petroleum Vs Exchange rates:
Further, the currency price changes in USD and AUD has been evaluated and it has
been found that the changes in the currency prices are stable and does not express about huge
changes into the price. At the same time, the stock price of the Woodside petroleum limited
has been enhanced in last two weeks and before the 2 weeks, the stock price of the company
was stable (Besley and Brigham, 2008). Currently, the changes into the currency are highly
correlated with the stock price of the company. The correlation could be analyzed through
figure 9.

Finances
14
Figure 9: Woodside Petroleum Vs Exchange rates
(Yahoo Finance, 2018)
Que 5
a) ESK Vs Exchange rates:
Further, the currency price changes in UK pound and AUD has been evaluated and it
has been found that the changes in the currency prices are stable and does not express about
huge changes into the price. At the same time, the stock price of the Etherstack plc has been
analyzed and it has been found that the stock price is also stable. Currently, the changes into
the currency are highly correlated with the stock price of the company. The correlation could
be analyzed through figure 10.

Finances
15
Figure 10: ESK Vs Exchange rates
(OANDA, 2018)
b) JIP Vs Exchange rates:
Further, the currency price changes in SGD and AUD has been evaluated and it has
been found that the changes in the currency prices are fluctuating and expresses about few
changes into the price. At the same time, the stock price of the Jack-in Group Limited has
been analyzed and it has been found that the stock price is also stable. Currently, the changes
into the currency are highly correlated with the stock price of the company. The correlation
could be analyzed through figure 11.

Finances
16
Figure 11: JIP Vs Exchange rates
(OANDA, 2018)