Title : Relationship between Raymond company and nifty 50
Objective : To calculate Beta and its significance
Literature review: The company’s financial performance has also been mixed. Raymond reported a net profit of Rs 522 crore for the year ended March 2023, up from Rs 208 crore in the previous year. However, its revenue grew at a slower pace of 12% to Rs 6,245 crore. The company’s financial performance has improved, but its stock price has been volatile
Data Collection: The NSE website was used to get the closing prices for the nifty and Raymond company. The weekly return of the Raymond company is referred to as “Y”, whereas the weekly return of the nifty is donated by “X”. A few additional items in this report, the details of which are given in the references, are lifted verbatim from other sources.
Data Analysis:
Equation: Y= -0.035 + 1.857X
Interpretation:
The above equation shows the relation between nifty50 and Raymond.
Return of Raymond is dependent variable and return of nifty50 is independent variable.
Negative sign means if nifty50 decreases by 1 unit then share price of Raymond will also decrease by 0.22 and vice versa.
Number of observation are 50
R square is 0.217 which means 21.7% of variances in Raymond are explained by nifty.
F is 13.35, p-value for this is 0.0006 which means model is statistically significant at 1% level.
Conclusion : Beta is -0.035 which is less than 1, it means that Raymond is good for long term investment.
Reference:
https://www.nseindia.com/get-quotes/equity?symbol=RAYMOND