Finance Investment : Renault & Total

FINANCIAL INVESTMENT

OPTIMIZE INVESTMENTS: RENAULT & TOTAL

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Presentation : Renault & Total

RENAULT

Renault is, along with PSA, one of the leading French car manufacturers. We invite you to discover the history and activities of this group, whose origin dates back to 1899.

E group Renault is a French automaker. Present in 118 countries, it employs more than 127,000 employees as of December 31, 2012.  In addition to its historic brand, the group now includes the Dacia and Renault Samsung Motors brands. Since 1999, he has joined the Japanese manufacturer Nissan through the Renault-Nissan alliance. In 2011, it became the third largest automotive group in the world.  The group achieved a turnover of 41.27 billion euros in 2012. Its shares are listed on compartment A of Euronext Paris and are included in the calculation of the CAC 40.

The Renault group specializes in passenger cars and light commercial vehicles. For more than 10 years, the diamond brand has been the leading brand of commercial vehicles in Europe.  The group now has three brands: Renault, Dacia and Renault Samsung Motors. It sold 2.5 million vehicles worldwide in 2012 and made more than half of these sales outside Europe.  It has factories and subsidiaries all over the world. Its top 5 markets are France, Brazil, Russia, Germany and Argentina.  The sale of vehicles accounts for 95% of sales and the remaining 5% correspond to services (maintenance, assistance, etc.) and financing.

TOTAL

The company was founded in 1924 under the name Compagnie française des pétroles (CFP). The President of the Council of the Third Republic Raymond Poincaré is at the origin of the creation of this company. He appointed Ernest Mercier as its first president and tasked him with "creating a tool capable of achieving a national oil policy. "

Total is one of the world's leading oil and gas companies.  
Total is the 6th largest oil group in the world. It is present in more than 130 countries and employs nearly 100,000 people.

The Total group is a French private oil company belonging to the category of "majors" (designating the six largest private oil companies worldwide).
The upstream segment of the group is organized around exploration, development and production of hydrocarbons, as well as activities in the fields of coal, gas and new energies.

Key figures of the group  In 2011, Total had a turnover of 184.7 billion euros, with a net profit of 11.4 billion. As of December 31, 2011, the group has nearly 96,000 employees in more than 130 countries. Almost a quarter of the Group's sales are generated in France (and almost 70% of turnover in Europe)

THE DATA

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RESULTS

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II) Organisation of the work

We list the process we have been through:

1.  We have been collecting data that we need on Boursorama.

1.  We calculate the annual stock return according to the stock price of each beginning and end of year from 1996 to 2006.

1.  Then we calculate the mean for each company , the variance,  the standard deviation, the skewness, the coefficient of skewness, the kurtosis, and coefficient of kurtosis, the coefficient of variation.
   
2. The covariance: in order to simplify the calcul we already calculated covariance for each year and then we did the sum. Finally, we calculated the correlation.

1. Then, we were able to create a graphic using expected return and standard deviation data.

Analysis of the results and conclusion

As we can observe with the calculus of the covariance between the Renault and Total, we can observe a positive covariance. It means that asset returns move together.

Both companies have a positive return. That means that it earned money during those years.

Variance:

It helps to determine the risk by measuring the volatility from an average.

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