Title: Relationship of Royal Orchids Hotel Ltd.
Author: Riddhi Surendra Kerkar
Introduction:
Royal Orchid hotel is one of the fastest- growing hospitality brands, managing a portfolio of over 75+ properties across the country. Founded in 2001 by Industry Veteran Mr. Chander K Baljee, Royal Orchid is a renowned and Trusted brand with grown plan.
Objective: Calculation of Beta of Royal Orchids Hotel Ltd. and significance
Literature Review:
1. Analysing time-frequency relationship between COVID-19 and FII trading activities using Wavelet coherence analysis
The infusion and withdrawal of portfolio investments have added research dimension as to whether the trading behaviour is due to pandemic and subsequent government actions or has resulted from the other markets like the oil crisis. (Gupta et al,2021)
2.Exchange Rate and Stock Markets During trade Conflicts in the USA, China, and India
Results from OLS model indicated that the fluctuations in exchange rate have minimum impact on the daily closing price of stock indices, that is, DJI, SSE, and Nifty50 in the USA, China, and India, respectively, however, exchange rate impacts volume of shares traded in all three stock exchanges. The GARCH model implies that the conditional variance is less volatile for Nifty volume, but highly volatile for SSE and DJI stock volumes traded. (Krishnan & Dagar, 2022)
Data Collection: Data was collected from NSE site of Royal Orchids Hotel Ltd. then data was manipulated from Friday closing price. From Friday closing price we found out that nifty50 weekly returns were considered has X and Royal Orchids Hotel Ltd. weekly returns were considered has Y.
Data Analysis:
Royal Orchids Hotel Ltd Returns=-0.7531-0.7005X
N=49, R square = 0.0299, F=1.413, significance= 0.05%
The above equation shows the relations between Y and X
Relationship which means X rises and Y falls and vice versa. In this equation b=0.7005, If X rises 1 unit of Y falls 0.7005 units
(t stat) for b is more than the table value b is statistically significant at 5% level R2=0.0299 which means 3% of y is explained similarly F=1.413 which is also more than table value, so overall model is statistically significant at 5% level
Conclusion:
Beta is less than 1 so it is good for long term Investment.
References:
Deepika Krishnan & Vishal Dagar, 2022. “Exchange Rate and Stock Markets During Trade Conflicts in the USA, China, and India,” Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(2), pages 185-203, May.
Pankaj Kumar Gupta & Prabhat Mittal & Amrita Kaur, 2021. “Analysing time-frequency relationship between COVID-19 and FII trading activities using wavelet coherence analysis,” Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 25(3/4), pages 383-399.