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September 10, 2025Open Access

Comparative Risk and Return Analysis of Tata Motors, Itc Ltd., and the Market: Evidence From January-March 2024

Key Points

TATA Motors showed higher returns with increased risk, indicating a strong negative correlation with the market.
ITC Ltd. exhibited more stable movements in line with the market, suggesting less volatility in its performance.
The analysis uses average return for performance and standard deviation as a proxy for risk during Q1 2024.
Insights can help investors tailor their strategies based on varying risk appetites and objectives.

Abstract

This study investigates and compares the risk-return profiles of two prominent Indian companies: TATA Motors and ITC Ltd. in relation to the broader market, represented by the BSE Sensex, over the period from January 1, 2024, to March 28, 2024. Using monthly and quarterly data, average return is used as a measure of performance while standard deviation serves as a proxy for risk. The findings indicate divergent behavior between the two companies: TATA Motors demonstrated higher returns with increased risk and a strong negative correlation with the market, while ITC Ltd. showed relatively stable, market-aligned movements. The analysis offers insights into the strategic placement of these stocks for investors with varying risk appetites and objectives. Keywords: Stock Market Analysis, Risk and Return, Correlation Analysis, Investor Strategy, Portfolio Diversification

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