Title: Relationship of Siemens Ltd. with Nifty 50
Author: Siddhesh Khandagale
Introduction: Siemens Ltd. is a prominent global technology company with a diversified portfolio encompassing electrification, automation, and digitalization solutions. Established in 1847 by Werner von Siemens and Johann Georg Halske in Berlin, Germany, Siemens has since grown into a multinational conglomerate with a significant presence in various sectors worldwide. Siemens Ltd., the subsidiary of Siemens AG, operates in India and plays a crucial role in driving innovation and technological advancements in the country. With a history spanning over several decades in India, Siemens Ltd. has established itself as a leader in providing cutting-edge solutions across multiple industries, including energy, healthcare, infrastructure, and manufacturing.
Objective: To calculate beta and find its significance.
Views & reviews: Siemens stock has historically been regarded as a solid investment due to the company’s strong presence in various sectors, technological innovation, and global reach. Investors often view Siemens as a reliable long-term investment due to its diversified portfolio, which spans industries such as electrification, automation, and digitalization.
Data Collection: Data is downloaded from
https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=SIEMENS
Regression Equation: Return of Siemens Ltd. =
Y=A+B*X
Y= (0.1623) + (-0.3506) * X
R Square = 0.0263 P value = 0.2703
F = 1.2448 N = 48
Interpretation: The above equation shows relationship between NIFTY 50 and Siemens Ltd. share. Return of Siemens Ltd. is dependent variable and Return of NIFTY 50 is independent variable. Here A value is positive that signifies that there is a inverse relationship. That means when the Nifty50 rise Share price decreases and when the Nifty50 decrease the share price increases. If NIFTY 50 price rises by 1 unit, Siemens Ltd. share price will rise by 0.0263 unit & vice versa. No. of observations are 48. We know that in regression we determine the relationship between the two variables from P value. When the P value is more than 0.05 Null Hypothesis and the P value less than 0.05 is Alternate Hypothesis. Null hypothesis means there is no relationship between the two variable and Alternate Hypothesis means there is relationship between the two variables. Here the P value for which is 0.2703 which means Null Hypothesis. Here the standard error is 32%. This is happened due to some other condition, or we can say for other variable which are not in this model. Here the F value is 1.2448 and the P value is 0.2703 which means overall model is statically significant at 1% significant level.
Conclusion: After doing all the analysis we conclude that our B value is -0.3506 and is the stock that will go up when the market goes down, a negative B value right for you. That if you want to go for short term investment it’s a good option for you.
Reference:
https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=SIEMENS
https://www.siemens.com/in/en.html
https://en.wikipedia.org/wiki/Siemens