Title: Relationship between Cybertech systems and software limited with Nifty50.
Author: Chandan Gupta
Introduction: –
Cybertech Systems and Software Limited is a cutting-edge technology company specializing in the development of advanced software solutions and cyber technologies. Established in [19th January 1995], Cybertech has swiftly risen to prominence as a leader in the field of cybersecurity, software development, and IT consultancy services.
Data Collection:
Data for NIFTY 50 and Cybertech Systems and Software Limited has been downloaded from Yahoo website for Period of 1st March 2023 to 28th February 2024, Friday closing prices were calculated and weekly returns was found out. Weekly Returns of Cybertech Systems and Software Limited were regressed on weekly returns on NIFTY 50.
Data Analysis:
Format of regression equation is Y= α + β(X)
Equation of regression of weekly returns of Cybertech Systems and Software Limited on weekly returns of nifty50 index –
Where,
Weekly returns of Cybertech Systems and Software Limited = (0.274 + 1.311)*weekly return of nifty 50 index.
Number of observations: 48,
R square = 0.079981812,
F = 3.999011564,
P-value = 0.779700169
Interpretation:
The above equation shows relationship between weekly returns of Cybertech systems and software Limited Company and weekly returns of Nifty 50 Index.
Positive sign means direct relation, meaning if weekly returns of Nifty 50 Index rise then weekly returns of Cybertech systems and software Limited Company also rises and vice-versa.
T-stat for b is 1.999752876 and the p value is 0.051452504 which is more than 0.05, meaning b is not statistically significant at 5% level, meaning price does not play a significant role for demand. The Number of observations is 48.
R-square is 0.079981812, meaning 7% of Cybertech systems and software Limited share is explained by the movement in Nifty, Balance meaning 93% is error due to the variables not taken in the model.
F is 3.999011564, the P value for which is 0.051452504 which is more than 0.05 so the overall model is not statistically significant.
Conclusion: –
As beta = 1.311033884, is greater than 1, therefore company is good for short term investment