Objective
\nTo calculate \u03b2 & find its significance
\nData 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 Shell has been gathered. The data has been narrowed down to the weekend (Friday) closing price only.
\nData Analysis
\nRegression Statistics
\nMultiple R\t0.239675
\nR Square\t0.057444
\nAdjusted R Square\t0.053613
\nStandard Error\t78.50437
\nObservations\t248<\/p>\n
Interpretations:
\nHere, we can observe that the R square value is 0.057444, which means that 5.74% of weekly returns of Shell industries can be explained by Nifty.
\nWe can infer that to the given extent shell does follow the Nifty trend.<\/p>\n
ANOVA
\n \tdf\tSS\tMS\tF\tSignificance F
\nRegression\t1\t92397.56854\t92397.57\t14.99246\t0.000138
\nResidual\t246\t1516082.099\t6162.935
\nTotal\t247\t1608479.667\t \t \t <\/p>\n
Interpretations:
\nH0: Nifty is not influencing the weekly returns of Shell
\nH1: Nifty is influencing the weekly returns of Shell
\nHere as the F value is 14.99246 which is more than 4, thus we reject the null hypothesis & accept the alternate hypothesis, concluding that nifty is influencing the weekly returns of Shell.
\n \tCoefficients\tStandard Error\tt Stat\tP-value\tLower 95%\tUpper 95%\tLower 95.0%\tUpper 95.0%
\nIntercept\t739.2919\t68.1186838\t10.853\t1.12E-22\t605.1217\t873.4622\t605.1217\t873.4622
\nX Variable 1\t0.015951\t0.004119612\t3.87201\t0.000138\t0.007837\t0.024065\t0.007837\t0.024065<\/p>\n
Interpretations:
\nWe can observe here that the Beta value is 0.843596 meaning that 1 unit change in Nifty leads to 0.843596 change in weekly returns of Shell. Also, the value of beta is positive indicating the presence of a positive relationship between the two variables.
\nThe P value is 1.12E-22 which is less than 0.05, thus the model is significant at 95% confidence interval.<\/p>\n","protected":false},"excerpt":{"rendered":"
Objective To calculate \u03b2 & find its significance Data collection The data was gathered from a secondary source, the NSE\u2019s official website. Data on the NSE\u2019s daily closing stock price & the Shell has been gathered. The data has been narrowed down to the weekend (Friday) closing price only. Data Analysis Regression Statistics Multiple R… Continue reading Relationship with Nifty-50 and Shell Infotech<\/span><\/a><\/p>\n","protected":false},"author":92004,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-16079","post","type-post","status-publish","format-standard","hentry","category-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16079","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\/92004"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16079"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16079\/revisions"}],"predecessor-version":[{"id":16095,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16079\/revisions\/16095"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16079"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}