Title: Relationship of Nifty with Angel One Limited
Author: ADHISHTHA MANOHAR
Introduction: Angel One Limited is a Fintech company providing broking services, margin trading facility, research services, depository services, investment education and financial products distribution to its clients It is SEBI-registered stock brokerage firm and a trading member of BSE, NSE, and MCX. All the transactions placed through the broker are regulated by SEBI regulations which make Angel One a safe broker for trading & investment.
Objective: To find out beta of Angel One and its significance
Data collection: Data for Nifty 50 and Angel One has been downloaded from nseindia.com for the period 1-12-23 to 31-1-24. Weekly closing prices were found out. Weekly returns of Angel One were regressed on Weekly returns Nifty.
Data Analysis: Format of Regression equation is Y = a + B(X)|
Equation of regression of weekly returns of Angle One = -1.70937 -0.52159 x Weekly returns of Nifty 50
Where,
Number of Observations = 48,
R Square = 0.0168
F = 0.7824
P-value = 0.38099
Interpretation:
- The above equation shows the relationship between the weekly returns of Angel one and the weekly returns of Nifty 50.
- Negative sign means inverse relationship, meaning if price rises demand falls and vice versa.
- If weekly returns of Nifty 50 index rise by 1 unit, Angel one will fall by
-0.52159 units and vice versa.
- The value inside bracket is t-stat for b, the P-value for which is 0.38099 which is less than 0.05 meaning b is statistically significant at 5% level.
- Number of observations are 48. R square is 0.0168 meaning only 1%, Angel one is explained by weekly returns of Nifty 50. Balance 99% is the error due to other variables which are not in the model.
- F is 7824, the P-value for which is 0.38099 which is more than 0.05 meaning overall the model is statistically significant at 5% level.
Conclusion:
As β (-0.521583347) is less than 1, Angel one is good to invest for long term.