Assignment 2
Find two companies in the same industry (particularly, try to find competitors). These companies cannot be Apple vs. Samsung, or Tesla vs. NIO.
They must be companies that are listed (so you can find their stock price), and if possible, companies that operate internationally (or have international exposure).
Choose one year to make a comparison between the two. You must read the financial statements for the year you have chosen.
When going over their financial statements, list all of the risk factors affecting both companies (e.g. Exchange rate risk, interest rate risk, fuel price risk, demand risk)
Run a regression for their stock price against the risk factors that you identified (Use Excel functions.
If you forgot how to use Excel, Google will help. See the sample project for an example). For the regression, you will need to use several years of data (not just the year you picked to compare).
Make sure the data you use is in the same format (for example, all monthly data, or all weekly data).
Read their financial statements and conclude whether any of the risk factors is having an impact on their stock price. If they are hedging the risk factor, are they doing a good job of hedging?
