Rosstta Stone
As seen from the graph above, it’s easy to see the trend of the S&P 500 and Walmart. They do not follow the trend of Exxon and the 500. They follow a different trend where Wal-Mart’s stock price seems to drop before the S&P 500. Wal-Mart almost sets the trend for the US market in a certain way.
Question 3
Samsung Stock Price vs South Korean Stock Market
As we can see, Samsung’s stock performance doesn’t correlate to country of origins of the company. After big crash of Samsung at the end of the October, we can see slight downward trend of the South Korean market, however it is still in growth, whereas Samsung recorded drop of more than 25%. From that, we can conclude, that Samsung indeed, affects Korean stock market performance. However, it is not in very high degree level.
Volkswagen Stock Price vs German Stock Market
In this case, we can definitely notice strong correlation between Volkswagen Stock, and Germany Market performance. The German stock market seems more stable, with lower amplitudes, however it is most likely caused by higher degree of differentiation. Aside from, that, all ups and downs seem to be almost identical when compared to each other and leave no doubts about strong relationship between company and a country, where the headquarters are.
Volkswagen Stock Price vs Samsung Stock Price
Like we can observe on this graph, the performance of those two foreign company are not even close to be suspected of any kind of correlation. First of all they are not even from similar business branch. Secondly both companies are international, with strong presence in most countries in the world, which eliminates currency exchange risk, because companies can always outweigh loss of one by gain of the other, plus differentiated products and portfolios. The only thing companies have in common is releasing faulty products, that hurt their stock prices (for VW it was at the beginning of 2016- higher emission of CO2 engines, for Samsung- highly flammable batteries in their products). However we can with certainty say that none of those event had impact on the other’s stock performance
Samsung Stock Price vs S&P 500
Again, Samsung stock market performance is not related at all to S&P 500. Like in the other examples it is hard to say, whether effects of S&P 500 had any influence on Samsung stock price, because of the recent drops Samsung suffered from. However, we can most definitely