RELATIONSHIP OF SONY WITH NIFTY
AUTHOR – Samarth Sharma
INTRODUCTION – Sony India Private Limited (Sony India), a private limited company with its ultimate holding company as Sony Group Corporation, Japan, has established itself as a premium brand in various product categories including television, digital imaging, personal audio, home entertainment, gaming, car audio, and professional solutions. The company places a strong emphasis on customer satisfaction and maintains high standards in sales and services. Sony also prioritizes environmental sustainability, aiming to achieve a zero environmental footprint throughout the lifecycle of its products and business activities to contribute to a healthier and enriched life for all of humanity and future generations.
OBJECTIVES – To calculate Beta and its significance.
VIEWS AND REVIEWS – Investors should continue to monitor the company’s performance closely, particularly in relation to its strategic initiatives and response to market trends. In summary, Sony’s outlook for 2024 is cautiously optimistic, with a reasonable expectation for continued growth and profitability.
DATA COLLECTION – Nifty and Sony’s closing price was collected from YAHOO FINANCE website. Weekly return of Nifty is termed as “X” and weekly return of sony is termed as “Y”. Besides that, a few other things written in this report are taken from other websites and its information is provided in references.
DATA ANALYSIS –
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SUMMARY OUTPUT |
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Regression Statistics |
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Multiple R |
0.2454753 |
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R Square |
0.0602581 |
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Adjusted R Square |
0.0402636 |
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Standard Error |
3.7084146 |
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Observations |
49 |
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ANOVA |
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df |
SS |
MS |
F |
Significance F |
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Regression |
1 |
41.445869 |
41.445869 |
3.0137325 |
0.0891141 |
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Residual |
47 |
646.35991 |
13.752339 |
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Total |
48 |
687.80578 |
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Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
Lower 95.0% |
Upper 95.0% |
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Intercept |
0.3332009 |
0.5394435 |
0.6176753 |
0.5397708 |
-0.75202 |
1.4184214 |
-0.75202 |
1.4184214 |
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X Variable 1 |
0.6611125 |
0.3808229 |
1.7360105 |
0.0891141 |
-0.105004 |
1.4272293 |
-0.105004 |
1.4272293 |
Equation: Y= 0.3332009 + 0.6611125x
Interpretation: The above equation shows the relation between Nifty50 and Sony.
Return of Sony is dependent variable and return of Nifty50 is independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of Sony will also rise by 0.6611125 and vice-versa.
Number of observations are 50.
1.7360105 is the t-stat for Y, the p-value for which is 0.0891141
R square is 0.0602581 which means 95% of variances in Sony are explained by Nifty.
F is 3.0137325, p-value for this is 0.0891141 which means model is statistically significant at 1% level.
CONCLUSION- Beta is 0.3332009 which is less than 1, it means that SONY is good for long term investment.
REFERENCE
https://www.nseindia.com/get-quotes/derivatives?symbol=NIFTY
