Relationship of Voltas Company & Nifty-50<\/p>\n
Author \u2013 Vaishnavi Kishor Padwad <\/p>\n
Introduction \u2013
\nVoltas Limited is an Indian multinational home appliances and consumer electronics company headquartered in Mumbai, Maharashtra, India. It designs, develops, manufactures and sells products including Air Conditioners, Air Coolers, Refrigerators, Washing machines, Dishwashers, Microwaves, Air purifiers, Water dispensers. The company was incorporated on 6 September 1954 in Mumbai, as a collaboration between Tata Sons and Volkart Brothers. Its shares are traded on National stock exchange as well as Bombay stock exchange too. <\/p>\n
Objective \u2013
\nCalculate the Beta of the \u201cVOLTAS Company\u201d and see its significance.<\/p>\n
Data Collection \u2013
\nFirstly, we have downloaded the data of Voltas and Nifty-50 dated from 1st April 2021 to 31st March 2022 from the official (old) website of National Stock Exchange(nseindia.com). Firstly, we have taken the data of Nifty-50 and after deleting all the column except date and closing stock, we have added the weekday column in the data using weekday function of excel, then we have deleted all rows except the 5th day (Friday) rows. Then we have added another column named as Returns column where we have found the returns by using the values in closing stock column and named it as X (which will be X for regression also). Similarly repeating all these steps for our selected company, we named it as Y (which will be Y for regression also). Here is how we have collected the X and Y values. <\/p>\n
Data Analysis \u2013
\nWe can write the equation in the form of Y = a + b(X)
\nWhere, Y = Voltas Returns
\n X = Nifty-50 Returns
\n a = intercept and b = slope
\nHence, the equation becomes,
\nY = 0.1812 + (1.2047)*X
\nVoltas Returns = (0.1812) + (1.2047)*(Nifty-50 Returns)
\n (4.1636)
\nn = 45 R2 = 0.2873 and F = 17.3362<\/p>\n
Conclusion \u2013
\nThe above equation in the Data analysis explains us the relationship between X (Nifty-50 Returns) and Y (Voltas Returns).
\n If X rises by 1 unit, then Y will rise by 1.2047 units and vice versa.
\nFigure in bracket just below the equation i.e. (4.1636) is the value for t-stat for b for which the p-value is 0.000148, which is less than 0.05 implies that b is statistically significant at 5% significant level.
\nR2 is 0.2873 which means 28.73% of Y is explained by X and remaining 71.27% is error.
\nThe value of F is 17.33624 and the p-value for which is 0.000147652, which is less than 0.05, which means the overall model is statistically significant at 5% significant level or 95% confidence level.<\/p>\n","protected":false},"excerpt":{"rendered":"
Relationship of Voltas Company & Nifty-50 Author \u2013 Vaishnavi Kishor Padwad Introduction \u2013 Voltas Limited is an Indian multinational home appliances and consumer electronics company headquartered in Mumbai, Maharashtra, India. It designs, develops, manufactures and sells products including Air Conditioners, Air Coolers, Refrigerators, Washing machines, Dishwashers, Microwaves, Air purifiers, Water dispensers. The company was incorporated… Continue reading Relationship of Voltas Company & Nifty-50<\/span><\/a><\/p>\n","protected":false},"author":92556,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,9],"tags":[355],"class_list":["post-16376","post","type-post","status-publish","format-standard","hentry","category-finance","category-management","tag-jdbims","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16376","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\/92556"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16376"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16376\/revisions"}],"predecessor-version":[{"id":16470,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16376\/revisions\/16470"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16376"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}