Problem Title:
\nTo determine the relationship between Nifty and Vedanta Limited.<\/p>\n
Author \u2013 Veda Kothamachu<\/p>\n
INTRODUCTION OF COMPANY
\nVedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world\u2019s leading Oil & Gas and Metals company with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, and Aluminium & Power across India, South Africa, and Namibia.
\nFor two decades, Vedanta has been contributing significantly to nation building. Governance and sustainable development are at the core of Vedanta’s strategy, with a strong focus on health, safety, and environment. Vedanta and its group companies have been featured in the Dow Jones Sustainability Index 2020<\/p>\n
OBJECTIVE
\nTo calculate beta of company and find its significance<\/p>\n
Data Collection:
\nData was collected from the NSE Website which comprises of historic data for the past 1 year. The Friday of each week of the year was taken into consideration. The resultant was calculated, and regression was performed on the data.<\/p>\n
Data Analysis:
\nWe know Y= a +bx1 Where b is the beta value. H0 \u2013 Null Hypothesis
\nH1 \u2013 Alternate Hypothesis
\nIf the beta coefficient is significant, the interpretation is that for every 1-unit increase in the predictor variable, the outcome variable will increase by the beta coefficient value.<\/p>\n
It was found that R Square is 0.04203, the regression Equation was found to be
\nY= -0.5765+0.0034X
\nHere Beta value is +0.0034<\/p>\n
SUMMARY OUTPUT<\/p>\n
Regression Statistics
\nMultiple R 0.20503262
\nR Square 0.04203837
\nAdjusted R Square 0.02026652
\nStandard Error 5.86069015
\nObservations 46<\/p>\n
Interpretations:
\nWe can see that the R square value is 0.0420, which means that Nifty can explain
\n4.2 % of the weekly returns of Vedanta. Because the proportion is low, we may deduce that Vedanta does not follows the Nifty trend to a certain extent.<\/p>\n
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
\nIntercept -0.5765445 0.89882557 -0.641442 0.52456307 -2.388008384 1.23491945 -2.3880084 1.23491945
\nX Variable 1 0.0034582 0.00248871 1.38955338 0.17165627 -0.00155747 0.00847386 -0.0015575 0.00847386<\/p>\n
We can observe here that the Beta value is 0.00346 meaning that 1 unit change in Nifty leads to 0.00346 change in weekly returns of Vedanta. We also need to note that the value is beta is positive indicating both of them are proportional to each other.<\/p>\n
ANOVA
\ndf SS MS F Significance F
\nRegression 1 66.3205304 66.3205304 1.93085859 0.171656268
\nResidual 44 1511.29832 34.3476891
\nTotal 45 1577.61885<\/p>\n
H0: Nifty is not influencing the weekly returns of Vedanta.
\nH1: Nifty is influencing the weekly returns of Vedanta.<\/p>\n
Here as the F value is 1.93086 which is less than 4, thus we can accept the null- hypothesis and reject the alternate hypothesis, concluding that nifty is not influencing the weekly returns of Vedanta.
\nAlso, the Significance F value is 0.1716 which is more than .025 thus the model isn\u2019t significant.<\/p>\n","protected":false},"excerpt":{"rendered":"
Problem Title: To determine the relationship between Nifty and Vedanta Limited. Author \u2013 Veda Kothamachu INTRODUCTION OF COMPANY Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world\u2019s leading Oil & Gas and Metals company with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, and Aluminium &… Continue reading Vedanta Ltd._BRM Project<\/span><\/a><\/p>\n","protected":false},"author":91962,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70],"tags":[],"class_list":["post-16007","post","type-post","status-publish","format-standard","hentry","category-micro-economics","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/91962"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16007"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16007\/revisions"}],"predecessor-version":[{"id":16124,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16007\/revisions\/16124"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16007"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}