Title: Relationship of VI with nifty50
Author: Vidhi Chordia
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Objective: To calculate Beta and find its significance
Views and reference:
VI’s stock performance in the last year has been disappointing, reflecting the company’s ongoing challenges. While there are some positive factors and potential catalysts, investors should be cautious and carefully assess the risks before making any investment decisions.
Additional data points to consider:
Average trading volume (past year): 57.76 Million shares
Market capitalization (as of December 22, 2023): ₹21,213.03 Crore
Return on Equity (ROE): -30.72%
Data analysis:
Equation= -67.8381-0.00127x, n=50
Interpretation:
This statistical analysis suggests that the regression model has an R Square of approximately 24.43%, indicating that about 24.43% of the variability in the dependent variable is explained by the independent variable (X Variable 1). The coefficient for nifty 50 1 is -0.00127, implying that for each unit increase in nifty501, the dependent variable decreases by approximately 0.00127 units. The intercept is -67.8381, representing the estimated value of the dependent variable when nifty50 1 is zero. The p-values suggest that both the intercept and nifty50 1 are statistically significant.
Conclusion:
Beta is -67.8381 which is less than 1,it means that VI is good for long term investment.
Reference:
data is collected from https://www.nseindia.com/reports-indices-historical-index-data, https://www.nseindia.com/get-quotes/equity?symbol=POLYCAB#info-historicaldata from 1 dec 2022 to 30 nov 2023.