In my paper titled “Relationship of Jubilant Foodworks with Nifty 50” I have investigated the relationship between the closing prices of Jubilant Foodworks and Nifty 50. I have used the data from 1st June 2022 to 31st July 2023 and found that there is a negative relationship between the two prices. This means that when the Nifty 50 rises, the price of Jubilant Foodworks tends to fall and vice versa. However, the relationship is not statistically significant, which means that it cannot be said with certainty that there is a causal relationship between the two prices.
I believe the negative relationship between the two prices is because Jubilant Foodworks is a cyclical stock. This means that its price tends to move in the same direction as the overall economy. When the economy is doing well, people tend to spend more money on food, which leads to higher prices for Jubilant Foodworks. However, when the economy is doing poorly, people tend to spend less money on food, resulting in lower prices for Jubilant Foodworks.
The fact that this relationship is not statistically significant suggests that there are other factors influencing the price of Jubilant Foodworks. These factors may include company performance, new product introductions or changes in consumer preferences.
Overall, my study suggests that there is a negative relationship between the closing prices of Jubilant Foodworks and the Nifty 50. However, the relationship is not statistically significant, which means that it is not possible to say with certainty that there is a causal relationship between the two prices. More research is needed to understand the factors that influence the price of Jubilant Foodworks.