Title: Relationship of RAINBOW CHILDREN MEDICARE LIMITED
Author: Rahul Uttam Debnath
INTRODUCTION
The stock market plays a vital role in the economic development of a country by facilitating capital formation and investment opportunities. Stock performance analysis helps investors understand price behavior, risk, and return. This report analyzes the stock performance of RAINBOW using historical closing prices and weekly returns.
OBJECTIVES OF THE STUDY
To calculate Beta (β) of RAINBOW CHILDREN MEDICARE LIMITED and observe it’s significance
DATA COLLECTION
Historical data of RAINBOW CHILDREN MEDICARE LIMITED and Nifty50 index data was downloded from NSE website for the period 1122024 to 30112025. The data was manipulated to get Friday closing prices
Data Analysis
a) Regression Statistics
• Multiple R = 0.2436
• This shows a weak positive correlation between the independent variable (Nifty 50 returns) and the dependent variable (Rainbow Children Medicare Limited returns).
• R Square = 0.0593
• About 5.93% of the variation in the dependent variable is explained by the independent variable.
• Adjusted R Square = 0.0389
• After adjusting for degrees of freedom, the model explains only 3.89% variation, indicating a poor fit.
• Standard Error = 3.6454
• This represents the average prediction error in the regression model.
• Observations = 48
• F value = 2.9019
• Significance F = 0.0952
• Since the significance value is greater than 0.05, the regression model is not statistically significant, meaning the independent variable does not have a strong impact on the dependent variable.
Regression Equation
• Y = 0.5273 + 0.4818X
• Intercept (0.5273)
• The intercept is not statistically significant (p > 0.05) and has limited interpretational importance.
• X Variable (0.4818)
• P-value = 0.0952 (> 0.05)
• This indicates a positive but statistically insignificant relationship.
• For every 1 unit increase in Nifty 50 returns, the returns of Rainbow Children Medicare Limited increase by approximately 0.48 units.
Conclusion
Rainbow Children Medicare Limited shows a weak positive relationship with the Nifty 50. With a Beta of 0.48, the stock is less volatile than the market. The low R-square (5.93%) and insignificant p-value (0.095) indicate that market movements have little influence, and returns are mainly driven by company-specific factors.
REFERENCES
- National Stock Exchange of India (NSE). Historical price data of Rainbow Children Medicare Limited and Nifty 50.
- Sharpe, W. F. (1964). Capital Asset Pricing Model (CAPM). Journal of Finance.
- Bodie, Z., Kane, A., & Marcus, A. J. Investments. McGraw-Hill Education.
- Ross, S. A., Westerfield, R., & Jordan, B. D. Fundamentals of Corporate Finance.
- Microsoft Excel. Data Analysis ToolPak – Regression Analysis.