Relationship of Procter & Gamble Health Ltd. with Nifty50
Author: Prachi Tiwari
Introduction: Procter & Gamble Health Ltd. is a division of Procter & Gamble (P&G), a multinational consumer goods company known for its wide range of products across various categories, including health, beauty, grooming, and household care. The health division focuses on products related to personal health and wellness, such as over-the-counter medications, dietary supplements, and oral health products.
Objective: To find out BETA of Procter & Gambler Health Ltd. And its significance.
Data collection: Data of Nifty50 and Procter & Gamble Health Ltd. was downloaded from https://www.nseindia.com from 1st June 2023 to 30th May 2024. Weekly returns of Nifty50 which was denoted as “X” and weekly returns of Procter & Gamble Health Ltd which was denoted as “Y” were calculated for Friday closing by the Formula: (y_(y-1)-〖 y〗_t)/y_t ×100 . Then, “Y” was regressed on “X”.
Data Analysis: Weekly returns of Procter & Gamble Ltd.
N=49, R square is 0.007, F = 0.34, P-value= 0.55
Interpretation: The above equation shows the relationship between nifty50 and weekly returns of Procter & Gamble Health Ltd.
The negative sign before (0.163) shows there is a negative relationship. The Coefficient of Nifty50 has t-stat = -0.58 and the P value is 0.55 which is more than 0.05, meaning Beta is not statistically significant to PGHL.
The number of observations is 49 (N=49). R square is 0.007, meaning 0.7% of PGHL prices are explained by Nifty. F value is 0.34 and P value is 0.55 meaning it is more than 0.05. This means that the overall model is not statistically significant.
Conclusion: Weekly returns Coefficient is (0.163) which is negative so this type of investment should be avoided.