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Research Paper | Financial Management | Volume 15 Issue 8, August 2026 | Pages: 814 - 820 | Papua New Guinea
Return Relationships between Big Four Australian Bank Stocks and the S&P/ASX 200
Abstract: This study examines the relationship between the monthly stock returns of four major Australian banks and the S&P/ASX 200 and evaluates the usefulness of historical market information for return analysis. Monthly observations covering June 2021 to May 2026 are analyzed for Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank, and Westpac Banking Corporation. Risk-return measures, correlation analysis, and regression analysis are used to assess the behavior of bank returns relative to the market index. The results indicate positive relationships between the selected bank stocks and market returns, although the strength of these relationships and stock volatility differ across banks. Commonwealth Bank exhibits comparatively high volatility, whereas Australia and New Zealand Banking Group shows lower volatility within the selected sample. The findings demonstrate how historical return analysis can support the assessment of market relationships and investment risk. The results may assist investors in making informed investment decisions while recognizing that historical relationships do not guarantee future returns.
Keywords: S&P/ASX 200, Australian banks, stock returns, technical analysis, correlation, regression analysis
How to Cite?: Dr. C. Murugesan, Kepi Mato Yogomin, "Return Relationships between Big Four Australian Bank Stocks and the S&P/ASX 200", Volume 15 Issue 8, August 2026, International Journal of Science and Research (IJSR), Pages: 814-820, https://www.ijsr.net/getabstract.php?paperid=SR26811063303, DOI: https://dx.doi.org/10.21275/SR26811063303