Relationship Between Nifty50 and Siemens
Author- Shreshth Nigam(F2)
Roll No.- 21230023030
Introduction
Siemens Limited is a technology company focused on industry, infrastructure, digital transformation, transport as well as transmission and generation of electrical power. It is the flagship listed company of Siemens AG in India. The company’s business structure is well oriented in meeting the needs of the industry in improving efficiency, quality, flexibility and speed.
Objective
To calculate Beta and its significance.
Views and Reviews
Siemens reported a strong fiscal year 2023, with orders increasing 7% to €92.3 billion and revenue increasing 11% to €77.8 billion.
Siemens also reported a record order backlog of €112 billion and a 33.8% increase in orders at Siemens Energy.
Data Collection
Nifty50 and Siemens closing price was calculated from NSE website. Weekly return of Nifty50 is termed as “X” and weekly return of Siemens is termed as “Y”. Besides that, other information is taken from different websites mentioned in references.
Data Analysis
Equation: Y= -0.4332+0.4414x
Interpretation
The above equation shows relationship between Nifty50 and Siemens Ltd.
Return of Siemens is dependent variable and return of Nifty50 is independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of Siemens will also rise by 0.036 and vice versa.
Number of observations are 48
-0.91 is the t-stat for Y, the p-value for which is 0.36.
R square is 0.036 which means 3.6% of variances in Siemens are explained by Nifty.
F is 1.75, p-value for this is 0.192 which means model is statistically significant at 1% level.
Conclusion
Beta is -0.433 which is than 1, it means that Siemens is good for long term investment.
Reference