As a trainee analyst in a London investment company, you are tasked to conduct stock market performance analyses and produce a report to the investment manager to identify some key factors that affect share performance. The investment manager is keen to make significant investment in companies and industries that thrive in the current COVID-19 market environment and ask you to do some research in this area.
You are to identify two companies in one industry that perform well under COVID-19 investment environment. In your report, please include the following:
Identify two or three good performance companies and justify the investment motivation for the industry and the companies (suggested words: 200 words)
Through research and review, identify key factors that could affect share performance for the companies in that industry (suggested words: 800 words)
Construct regression model(s) to examine the effect of different factors on share performance, i.e. CAPM, Fama and French three factors model and five factors model, or other models you develop. See some journals listed in the Assignment Support folder under Module (suggested words: 600 words)
Data introduction and sample statistics covering the most five recent years using daily data (suggested words: 200 words)
Discuss findings, including the following regression analysis areas: (suggested words: 1000 words)
Regression results and the economic meaning of key coefficients
Compare and contrast the two companies, i.e. performance and key factors
Examine multicollinearity
Examine heteroscedasticity
Examine autocorrelation
Examine model specification errors
Examine stationary/nonstationary
Examine cointegration
Discuss volatility
Conclusion and make recommendation to the investment manager (suggested words: 200 words)
Additional information:
