Topic: Relationship of Nifty with PFIZER Limited.
Author: Prajwal Gadre
Ø Introduction
Pfizer Inc. is a leading American multinational pharmaceutical and biotechnology company. Founded in 1849 by Charles Pfizer and Charles F. Erhart, the company is known for developing and manufacturing medicines and vaccines in various therapeutic areas, including oncology, cardiology, neurology, immunology, and infectious diseases. Pfizer played a crucial role in the COVID-19 pandemic by developing one of the first mRNA-based vaccines (Comirnaty) in collaboration with BioNTech. The company continues to innovate in biopharmaceuticals, working on treatments for rare diseases, oncology, and vaccines.
Ø Objective
To find out the Beta of Pfizer and find its significance.
Ø Literature Review
Evidence of Abnormal Trading on COVID-19 Pfizer Vaccine Development Information Andrew N.
The study “Evidence of Abnormal Trading on COVID-19 Pfizer Vaccine Development Information” by Andrew N. Mason and Ahmed Elkassabgi, published in the Journal of Risk and Financial Management in 2022, investigates the impact of public announcements regarding COVID-19 vaccine developments on stock returns and volatilities for Pfizer, Moderna, and the S&P 500 index.
Pfizer/Biontech Post Vaccine Acute St-Elevation Myocardial Infarction: A Case
The Pfizer-BioNTech COVID-19 vaccine, are generally safe, rare adverse events like acute myocardial infarction (AMI) have been reported. The exact mechanism linking mRNA vaccines to thrombotic events remains unclear. Potential explanations include allergic reactions to vaccine excipients leading to acute coronary syndromes (Kounis syndrome) or prothrombotic immune responses similar to heparin-induced thrombocytopenia.
Ø Data Collection
Data for Pfizer and Nifty 50 from the period 1st January 2024 to 31st December 2024 the data was taken from NSE to calculate the Friday closing prices for both indices. The Nifty 50 was represented as X and Pfizer as Y. A linear regression was performed where Y was regressed on X.
Ø Data Analysis
Equation: Y = 0.0126+0.8061X
Interpretation: The (Y = 0.0126+0.8061X) equation shows the relationship between the Nifty 50 (X) and Pfizer Share price (Y) indicating that Pfizer share price is the dependent variable and Nifty 50 is independent variable. The positive coefficient of 0.8061 indicates that for every unit increase in X, the dependent variable Y is expected to increase by 0.8061 units.
N=47 means there are 47 observation, the R-squared is 0.1067 meaning approximately 10.67% of the variation in Pfizer share price can be explained by changes in Nifty 50 and the balance 89.33% is the error due to the variables which are not in the model. The F of the model is 5.379 and the p value is 0.0249 is less than the conventional threshold of 0.05, indicating that the relationship between Nifty50 and Pfizer share price is statistically significant at 5% level. Consequently, this model provides evidence of a significant linear relationship between Nifty 50 and Pfizer share price.
Ø Conclusion
Beta of 0.8061 indicates that it is less than 1 mean it’s good for the long term investment.
Ø References
Andrew N. Mason & Ahmed Elkassabgi, 2022. “Evidence of Abnormal Trading on COVID-19 Pfizer Vaccine Development Information,” JRFM, MDPI, vol. 15(7), pages 1-10, July.
Abuzer Coskun & Ahmet Barıs Ozkan & Burak Demirci, 2021. “Pfizer Biontech Post Vaccine Acute St-Elevation Myocardial Infarction – A Case,” Biomedical Journal of Scientific & Technical Research, Biomedical Research Network+, LLC, vol. 40(4), pages 32538-32542, December.