Author – Rahil Parekh
Introduction – Reliance Industries Limited (RIL) is India’s largest private sector company and a Fortune 500 company. It is a multinational conglomerate that operates in many sectors, including petrochemicals, refining, oil and gas exploration, retail, telecommunications, and media.
Objective – To find out Beta of company and it’s significance.
Data Collection – Friday Closing price of Nifty 50 and NSE of Reliance Industries.
Data Analysis –
Weekly Return of the company – 1.037
(3.69 – T stat of weekly return)
observation – 46
R Square – 0.24
F value – 13.58
P Value – 0.00062
The above equation shows the relationship between Nifty 50 and Reliance Industry. Positive sign before the coefficient of Nifty 50 tell us that there is a positive relationship if nifty rises one unit our company will rise by 0.90 points and vice versa. Figure in bracket is T – Stat for Beta and the p value of which is 0.00062 which is less than 0.05 meaning beta is statistically significant. N – 46, R square is 0.24 which means 24 percent of our company return are explained by nifty 50. F – 13.58 and the P value of that is 0.00062 less than 0.05 meaning overall model is statistically significant at 5% level
Conclusion – beta > 1 and positive therefore our company is good for short term investment if nifty is at the bottom.