Title: Relationship of weekly return between Religare Enterprises Limited and Nifty50 (Regression Analysis)
Author- Rishi Bherwani
Roll no-10, ITM, EMBA-15/KHARGHAR.
Introduction: Religare Enterprises Limited (REL) is the holding company for one of India’s leading diversified financial services groups, headquartered in New Delhi, India. It offers an integrated suite of financial services through its underlying subsidiaries and operating entities, including loans to Small and Medium Enterprises (SME)’s, affordable housing finance, as well as retail broking and health insurance. REL is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India
Objectives:
To Calculate beta of Religare Enterprises Limited and find its significance using regression analysis with NIFTY50.
Data Collection:
Data for Religare Enterprises Limited and Nifty50 has been taken from www.nseindia.com for the time period 1st March 2019 to 28th Feb 2020.
From the available data, the closing rates of all the Fridays in the year was sorted to find out weekly returns for both Nifty as well as Religare Enterprises Limited. Then the weekly returns was calculated for both by using formula –
Weekly Return =(C3-C2)/(C2*100)
where, C3 is present week closing price and C2 is the previous week closing price.
Once the data is calculated, weekly return column for NIFTY50 is considered as “X” variable and the weekly returns column for Religare Enterprises Limited is considered as “Y” variable.

Data analysis:

Using the Regression Add-on in Microsoft Excel Data Analytics tool we get following values:
R Square R2=0.59278424
a= 1.289981
b = 0.995801
N (Observations) = 51
F = 71.32933*
Therefore, formulating below question:
Y = 1.289981-0.995801X
(8.445669)*
Result:- The above equation tells us the relationship between “Y” and “X”, that is Demand and Price. If price raises by unit, demand raises by 0.995801units. Positive Sign says that, there is reverse relationship. Means if price rises demand rises, similarly if price falls then demand also falls.
Figure In bracket is t-stat for “b”. b value for which is less than 0.05 so “b” is statistically significant at 5%. R2 = 0.59278424, which means 59% Y is explained by X. 41% error or other variables aren’t in the models. F is 71.32933. The P value for which is more than 0.05, overall model is statistically significant at 5%.
Conclusion:-
Price is significant and overall model is significant but error will be 41%