Essay About Tata Motors And Riskiness Of Stock

Computing Value at Risk Using Descriptive Statistics
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Computing Value-at-Risk using Statistical toolsAnd Descriptive statisticsPresented by:Rupal Mishra Table of contents:S.No.Topic1.)Objective2.)Introduction3.)Desctriptive_Statistics4.)Inferences5.)Probability_Distribution6.)Value_at_Risk7.)Correlation_Analysis8.)ConclusionOBJECTIVE:In the current project, we are computing value at risk for two securities. Both the securities are chosen from different industries and we are trying to understand there correlation. Value at Risk has been calculated using Normal Distribution curve drawn using one year data (From 1st April 2013 to 29th March 2014) of both securities.We are also using descriptive statistic techniques to figure out the variability and average returns of both the stocks. The riskiness of stock will help us identify, which stock is better to invest for a risky investor and which one is better for risk averse investor.At the end, we will be taking our decision based on value at risk computed and descriptive statistics done to find out, which stock has performed better and what does correlation between two suggests.INTRODUCTION:The project will be covered in two parts:In the first part, we will use descriptive statistics techniques to find out the to analyze the stocks selected.In the second part, we will do regression analysis of the stock with respect to indices and will use normal distribution probability curve to find out the value-at-risk  For our reference, we have chosen one automobile stock- TATA MOTORS and one oil stock-(ONGC), to analyze. As a general perception, we should think that as both the stocks are from opposing sectors, their correlation should be negative and adding an oil sector stock in automobile sector portfolio, should reduce the risk.At the end of project, we will prove through out statistical analysis of stocks over the year that they have not behaved in the similar fashion as we expected. This could be due to various other market factors. The price data for those stocks have been taken from here: