Analysis of Auto Parts Industry/ Usa /Deviations, Betas and Correlations /
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Analysis of Auto Parts Industry/ USA
/deviations, betas and correlations/
Module: Financial Markets
Module leader: Prof. György Komáromi
Written by László Földvári
Industry Analysis
I have choosen five companies from the Capital Goods sector / Autoparts Industry/ Nasdaq. The industry analysis is the essence and first step of getting a clearer view of the market players. We have to know the most important macroeconomical circumstances of industry as well. In the following pages I am going to analyze the industry, the choosen stocks and the brother industries. I will try to find explanations for the changes caused by the financial crisis with the help of calculated sigmas, betas and pair-wise correlations for two one-year periods: before and after the fall of Lehman Brothers. Hopefully we can have a broader picture how the financial measure were affected by the financial crisis and WHY? As we all know obviously autoparts is industry seriously depends from Automoblie industry.
Key Players are:
In North America, the automobile production market is dominated by what 's known as the Big Three:
General Motors - Produces Chevrolet, Pontiac, Buick and Cadillac, among others.
Chrysler - Chrysler, Jeep and Dodge.
Ford Motor Co - Ford, Lincoln and Volvo.
Two of the largest foreign car manufacturers are:
Toyota Motor Co
Honda Motor Co
Let me emphasize a relevant feature of this industry and studied fact of economy and business cycle, whch can be a correct answer for the changes of stocks. ( Bodie, Essentials of Investment) „ As the economy passes through different stages of the business cycle ( like a recession, or financial crisis), the relative profitability of different industry groups might be expected to vary. For example, at a trough, just before the economy begins to recover from recession, one would expect that cyclical industries, those with above-average sensitivity
Analysis of Auto Parts Industry/ USA
/deviations, betas and correlations/
Module: Financial Markets
Module leader: Prof. György Komáromi
Written by László Földvári
Industry Analysis
I have choosen five companies from the Capital Goods sector / Autoparts Industry/ Nasdaq. The industry analysis is the essence and first step of getting a clearer view of the market players. We have to know the most important macroeconomical circumstances of industry as well. In the following pages I am going to analyze the industry, the choosen stocks and the brother industries. I will try to find explanations for the changes caused by the financial crisis with the help of calculated sigmas, betas and pair-wise correlations for two one-year periods: before and after the fall of Lehman Brothers. Hopefully we can have a broader picture how the financial measure were affected by the financial crisis and WHY? As we all know obviously autoparts is industry seriously depends from Automoblie industry.
Key Players are:
In North America, the automobile production market is dominated by what 's known as the Big Three:
General Motors - Produces Chevrolet, Pontiac, Buick and Cadillac, among others.
Chrysler - Chrysler, Jeep and Dodge.
Ford Motor Co - Ford, Lincoln and Volvo.
Two of the largest foreign car manufacturers are:
Toyota Motor Co
Honda Motor Co
Let me emphasize a relevant feature of this industry and studied fact of economy and business cycle, whch can be a correct answer for the changes of stocks. ( Bodie, Essentials of Investment) „ As the economy passes through different stages of the business cycle ( like a recession, or financial crisis), the relative profitability of different industry groups might be expected to vary. For example, at a trough, just before the economy begins to recover from recession, one would expect that cyclical industries, those with above-average sensitivity