Title : Relationship of peninsula land with nifty 50
Author : Prerana Waghmare
Introduction : Peninsula Ltd is a multinational corporation renowned for its expertise in providing human resources, employment law, and health and safety advisory services to businesses worldwide. Founded in 1983, the company has established itself as a trusted partner for small and medium-sized enterprises, offering comprehensive solutions to navigate complex workplace challenges. Peninsula Ltd is committed to ensuring legal compliance, enhancing workplace safety, and fostering productive employee relations, thus enabling businesses to focus on their core operations and growth. With a global presence spanning multiple continents, Peninsula continues to be a leader in the field of HR consultancy.
Objective : To calculate beta and find its significant
Data Collection : The company Peninsula has been taken from NSE for the period 01-03-2023 to 28-02-2024. Data for Nifty 50 and crisil has been downloaded from NSE. India.com, for the period 1-3-2023 to 28-02-2024. Weekly closing prices were found out weekly returns were calculated. Weekly returns of peninsula were regressed on weekly returns of nifty.
Data Analysis :
Equation of peninsula share = -3.348 + 0.520 Nifty 50
Interpretation – The above equation shows relationship of peninsula and nifty 50.
Negative sign means inverse relationship , if nifty 50 falls then the return peninsula falls and vice versa.
If Nifty 50 rises by 1 unit, return of peninsula will rise by 0.520 units and vice versa.
T-stat for b is 1.452 and the p value is 0.153 which is more than 0.05 meaning b is not statistically significant at 5% level meaning nifty 50 does not play a significant role for peninsula.
No of observation are 47, R2 is 0.045 is 4.5% meaning price is not playing a significant role for demand. Remaining 95.5% is error due to variables not taken in the model. F value is 2.110 the P value for which is 0.153 which is more than 0.05 so the overall model is not statistically significant.
Conclusion: Beta is 0.520 which is less than 1 therefore peninsula is good for long term investment.