Introduction:
\nDivi’s Laboratories Limited is an Indian pharmaceutical company based in Hyderabad, Telangana, India that produces active pharmaceutical ingredients (APIs) and intermediates. Generic APIs, intermediates, and nutraceutical ingredients are manufactured and custom synthesised by the company. By market capitalization, Divi’s Laboratories is India’s second most valuable pharmaceutical company.<\/p>\n
Objective:
\nTo calculate \u03b2 & find its significance<\/p>\n
Data collection:
\nThe data was gathered from a secondary source, the NSE\u2019s official website. Data on the NSE\u2019s daily closing stock price & the Divi\u2019s Laboratories has been gathered. The data has been narrowed down to the weekend (Friday) closing price only.<\/p>\n
Data Analysis:
\nRegression Statistics
\nMultiple R 0.70725365
\nR Square 0.50020773
\nAdjusted R Square 0.48910123
\nStandard Error 355.398315
\nObservations 47<\/p>\n
Interpretations:
\nHere, we can observe that the R square value is 0.50020773, which means that 50% of weekly returns of Divi\u2019s Laboratories industries can be explained by Nifty. We can infer that to the given extent Divi\u2019s Laboratories does follow the Nifty trend.<\/p>\n
ANOVA
\ndf SS MS F Significance F
\nRegression 1 5688583.04 5688583.04 45.0374064 2.7372E-08
\nResidual 45 5683858.31 126307.962
\nTotal 46 11372441.3<\/p>\n
Interpretations:
\nH0: Nifty is not influencing the weekly returns of Divi\u2019s Laboratories
\nH1: Nifty is influencing the weekly returns of Divi\u2019s Laboratories
\nHere as the F value is 45.0374064 which is more than 4, thus we reject the null hypothesis & accept the alternate hypothesis, concluding that nifty is influencing the weekly returns of Divi\u2019s Laboratories.<\/p>\n
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
\nIntercept -431.18256 726.637865 -0.593394 0.55588849 -1894.7063 1032.34123 -1894.7063 1032.34123
\nX Variable 1 0.29673475 0.04421623 6.71099146 2.7372E-08 0.20767869 0.38579081 0.20767869 0.38579081<\/p>\n
Interpretations:
\nWe can observe here that the Beta value is 0.38579081 meaning that 1 unit change in Nifty leads to 0.38579081 change in weekly returns of Divi\u2019s Laboratories. Also, the value of beta is positive indicating the presence of a positive relationship between the two variables. The P value is 2.7372E-08 which is less than 0.05, thus the model is significant at 95% confidence interval.<\/p>\n","protected":false},"excerpt":{"rendered":"
Introduction: Divi’s Laboratories Limited is an Indian pharmaceutical company based in Hyderabad, Telangana, India that produces active pharmaceutical ingredients (APIs) and intermediates. Generic APIs, intermediates, and nutraceutical ingredients are manufactured and custom synthesised by the company. By market capitalization, Divi’s Laboratories is India’s second most valuable pharmaceutical company. Objective: To calculate \u03b2 & find its… Continue reading Relationship between Nifty & Divi\u2019s Laboratories<\/span><\/a><\/p>\n","protected":false},"author":91977,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[1640,1639],"class_list":["post-16042","post","type-post","status-publish","format-standard","hentry","category-finance","tag-divi","tag-divislab","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16042","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\/91977"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16042"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16042\/revisions"}],"predecessor-version":[{"id":16120,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16042\/revisions\/16120"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16042"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}