Title: Relationship between Zee media corporation with Nifty50.
Author: Zeeshan Khan
Introduction: – Zee media corporation Limited (formerly Zee News Ltd.) was founded by Essel Group and it was incorporated on 27 August 1999, as Zee Sports Ltd. It was a subsidiary of the Zee Telefilms Ltd (later renamed to Zee Entertainment Enterprises). The company was reincorporated on 27 May 2004, as Zee News Ltd.
Objective
To calculate beta and find it’s significance
Data Collection:
Data for NIFTY 50 and Zee media corporation has been downloaded from NSE 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 Shree Cement 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 Data patterns India ltd on weekly returns of nifty50 index –
Where,
Number of observations: 48,
R square =0.006456,
F =0.298922,
P-value = 0.01767
Interpretation:
( The above equation shows relationship between weekly returns of Zee media corporation 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 Zee media corporation also rises and vice-versa.
( If weekly returns of Nifty 50 Index rise by 1-unit, weekly returns of Zee media corporation will rise by 0.01767 unit and vice-versa.
( Figure in bracket shows t-stat for β, P-value for which is 0.587201, which is greater than 0.05 meaning β is not statistically significant at 5% significance level.
( Number of Observations are 48, R-square value is 0.006456 meaning approximately 0.06% of weekly returns of Zee Media Corporation are explained by weekly returns of Nifty 50 Index. Balance 99.94% (approximate) is error due to other variables which are not in the model.
( F is 0.298922, the P-value of which is 0.587201, which is more than 0.05 meaning overall, the model is not statistically significant at 5% significance level.
Conclusion: –
As beta = -0.0141, is less than 1, therefore company is good for long term investment