TITTLE: -REGRESSION ANALYSIS BETWEEN AGRO TECH FOODS LTD. AND NIFTY 50.
Author: – Alan Paul. ITM, Kharghar. Roll no.07.

Objective: – To understand the regression relationship between average weekly returns of Nifty 50 and Agro Tech Foods Limited.

Data Collection: -The data for the regression analysis is been taken from www.nseindia.com. The historical indices for the Agro Tech Foods Limited and the Nifty-50 of the year from 1 Feb, 2018 to 31 Jan, 2019 is been gathered.
The data was saved in CSV format. Data was manipulated to get every Friday’s closing price for the selected period of time.
Nifty 50 is denoted by “X”
Agro Tech Foods Limited is denoted by “Y”
And Y was tested on X i.e. regressing Y on X.

Data Analysis: –
The Model and formulas used are: –
Y = a +bX
X ̅ =∑X/N
Y ̅=∑Y/N
x = X – X ̅
y = Y – Y ̅
b=∑xy/∑(x)^2
a= Y ̅- bX ̅
e = Y – Y ̅
Variance of error=(σe) ^2 =∑e^2/N-K
S.E of b = √ ((σe) ^2 /∑x^2)
t stat of b = b/ S.E of b
ESS = (b^2) *(∑x^2)
R^2 = ESS/TSS
F = Mean ESS/Mean RSS.

Utilizing the Regression Add-on in Microsoft Excel Data Analytics tool below values were acquired

R Square = R^2 = 0.0302696286635872.
F = 1.46708053005288.
P value = 0.194215935505646.
Standard Error = 247.870998473234.

CONCLUSION: –
Above equation tells us the relationship between demand and price, if price rises by 1 unit demand will fall by 247.870998473234 units, vice versa.
F value is greater than the P value this model is not statistically good and significant. Risk factor of using this model for forecasting Agro Tech Foods Limited’s weekly returns are very high.
R square is 0.0302696286635872 which means 3.03% of demand depends upon price the balance is error i.e. 96.97%.