Relationship of Siemens Ltd with NIFTY 50
Title: RELATIONSHIP OF Siemens Ltd WITH NIFTY 50
Author: Saish Tandel
Introduction: Siemens Limited offers products, integrated solutions for industrial applications for manufacturing industries, drives for process industries, intelligent infrastructure and buildings, efficient and clean power generation from fossil fuels and oil & gas applications, transmission and distribution of electrical energy for passenger and freight transportation, including rail vehicles, rail automation and rail electrification systems (Key Observations:Highest Close Price: ₹4,991.55Lowest Close Price: ₹3,249.45)
Objective: To find out Beta of Siemens Ltd and its significant.
Data Collection: Data for Nifty 50 and Siemens Ltd was downloaded from NSE site for the period 01st April 2023 to 31st March 2024. Data was manipulated to get Friday closing prices and weekly returns were calculated by the formula: (Yt-1 – Yt) / Yt*100 weekly returns Siemens Ltd was regressed on weekly returns of Nifty 50.
Data Analysis: Weekly return of Siemens Ltd = -0.594 +(0.78)
N = 48, R2 =0.104, t stat = (1.250), F = 5.124, P-value 0.217
The above equation shows the relationship between Nifty 50 & Siemens Ltd. The positive sign before 0.30 means if Nifty decrease Siemens Ltd raises & vice versa. The Coefficient of Nifty 50 has t stat = (1.250), & the P value of which is 0.217 meaning Nifty 50 is not statistically significant. To increase the prices Siemens Ltd , R2 is 0.104meaning 1.05% of Siemens Ltd prices are explained by Nifty 50. 98.95% depends upon other factors. F 5.124 is & the P value of this is 0.217 meaning it is less than 0.05 meaning the overall model is not statistically significant.
Conclusion:
0.78 coefficient is positive, so Siemens Ltd is good for long term investment.