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.
Through research and review, identify key factors that could affect share performance for the companies in that industry .
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.
Data introduction and sample statistics covering the most five recent years using daily data.
Discuss findings, including the following regression analysis areas:
Regression results and the economic meaning of key coefficients
Compare and contrast the two companies, i.e. performance and key factors