Introduction
\nUltraTech Cement Limited is a Mumbai-based Indian cement firm that is part of the Aditya Birla Group. With a capacity of 116.75 million tonnes per year, UltraTech is India’s largest producer of grey cement, ready-mix concrete (RMC), and white cement. Outside of China, it is the only company in the world with a capacity of more than 100 million tonnes in a single country.<\/p>\n
Objective
\nTo calculate \u03b2 & find its significance<\/p>\n
Data collection
\n The data was gathered from a secondary source, the NSE\u2019s official website. Data on the NSE\u2019s daily closing stock price & the UltraTech Cement has been gathered. The data has been narrowed down to the weekend (Friday) closing price only.<\/p>\n
Data Analysis
\nRegression Statistics
\nMultiple R\t0.81598714
\nR Square\t0.665835
\nAdjusted R Square\t0.65840912
\nStandard Error\t277.761979
\nObservations\t47<\/p>\n
Interpretations:
\nHere, we can observe that the R square value is 0.665835, which means that 66.5835% of weekly returns of UltraTech Cement can be explained by Nifty.
\nWe can infer that to the given extent UltraTech Cement does follow the Nifty trend.<\/p>\n
ANOVA
\n \tdf\tSS\tMS\tF\tSignificance F
\nRegression\t1\t6917732.72\t6917732.72\t89.6640152\t2.7915E-12
\nResidual\t45\t3471827.26\t77151.7169
\nTotal\t46\t10389560\t \t \t <\/p>\n
Interpretations:<\/p>\n
H0: Nifty is not influencing the weekly returns of UltraTech Cement
\nH1: Nifty is influencing the weekly returns of UltraTech Cement
\nHere as the F value is 89.6640152 which is more than 4, thus we reject the null hypothesis & accept the alternate hypothesis, concluding that nifty is influencing the weekly returns of UltraTech Cement.<\/p>\n
\tCoefficients\tStandard Error\tt Stat\tP-value\tLower 95%\tUpper 95%\tLower 95.0%\tUpper 95.0%
\nIntercept\t1785.92493\t567.904693\t3.1447617\t0.00294284\t642.10616\t2929.74369\t642.10616\t2929.74369
\nX Variable 1\t0.32722633\t0.03455725\t9.46910847\t2.7915E-12\t0.25762446\t0.39682821\t0.25762446\t0.39682821<\/p>\n
Interpretations:
\nWe can observe here that the Beta value is 0.39682821 meaning that 1 unit change in Nifty leads to 0.39682821 change in weekly returns of UltraTech Cement. Also, the value of beta is positive indicating the presence of a positive relationship between the two variables.
\nThe P value is 2.7915E-12 which is less than 0.05, thus the model is significant at 95% confidence interval.<\/p>\n","protected":false},"excerpt":{"rendered":"
Introduction UltraTech Cement Limited is a Mumbai-based Indian cement firm that is part of the Aditya Birla Group. With a capacity of 116.75 million tonnes per year, UltraTech is India’s largest producer of grey cement, ready-mix concrete (RMC), and white cement. Outside of China, it is the only company in the world with a capacity… Continue reading Relationship between Nifty & Ultra Tech Cement<\/span><\/a><\/p>\n","protected":false},"author":91975,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[1638],"class_list":["post-16037","post","type-post","status-publish","format-standard","hentry","category-finance","tag-ultra-tech-cement","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16037","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\/91975"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16037"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16037\/revisions"}],"predecessor-version":[{"id":16139,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16037\/revisions\/16139"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16037"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}