Regression Analysis of Weekly Returns between NIFTY50 and Piramal Enterprises Limited<\/p>\n
Title: Regression Relationship of Piramal Enterprises Limited (PEL) with NIFTY50.<\/p>\n
Author: Pooja Rajput. [1st year MMS (JDBIMS)]<\/p>\n
Introduction:
\nPiramal Enterprises Limited (PEL) is one of India\u2019s leading diversified companies, with a presence in Financial Services and Pharmaceuticals. PEL\u2019s consolidated revenues were ~US$1.7 billion in FY2020, with around ~34% of revenues generated from outside India. Driven by both organic as well as inorganic strategy, PEL has steered dynamic business growth over the three decades of its existence.<\/p>\n
Objective:
\nTo understand the regression relationship between average weekly returns of Nifty 50 and Piramal Enterprises Limited (PEL).<\/p>\n
Data Collection:
\nThe closing price data of Nifty50 and Piramal Enterprises Limited was taken from www.nseindia.com (National Stock Exchange) for the time period 1ST APRIL 2021 to 31ST MARCH 2022.
\nFrom the available data, the closing rates of all the Fridays in the year was sorted to find out weekly returns for both Nifty as well as Piramal Enterprises Limited then the weekly returns were calculated for both by using formula \u2013
\n Weekly return = (C3-C2)\/C2 *(100)
\n Where C3 represent week closing price and C2 is previous week closing price.
\nOnce the data is calculated, weekly return column for NIFTY50 is considered as \u201cX\u201d variable and the weekly returns column for Piramal Enterprises Limited is considered as \u201cY\u201d variable.<\/p>\n
The Model and formulas used are:-
\nY = a +bX
\nX \u0305 =\u2211X\/N
\nY \u0305=\u2211Y\/N
\nx = X \u2013 X \u0305
\ny = Y \u2013 Y \u0305
\nb=\u2211 xy \/\u2211(x)^2
\na= Y \u0305- bX \u0305
\ne = Y \u2013 Y \u0305
\nVariance of error=(\u03c3e)^2 =\u2211e^2\/N-K
\nS.E of b = \u221a ((\u03c3e)^2 \/\u2211x^2)
\nt stat of b = b\/ S.E of b
\nTSS=ESS+RSS
\nESS = (b^2)*(\u2211x^2)
\nRSS = \u2211e^2
\nR^2 = ESS\/TSS
\nF = Mean ESS\/Mean RSS<\/p>\n
Data Analysis:
\nUtilizing the Regression Add-on in Microsoft Excel Data Analytics tool below values were acquired
\nR Square = R^2 = 0.364481414
\na = 0.060358947
\nb = 1.491164019
\nF = 24.6612784
\nP value = 0.927602
\nBelow expression shows the relationship model between Piramal Enterprises Limited and NIFTY50 weekly returns:
\nPiramal Ent Ltd Weekly Return = 0.060358947 + 1.491164019*(NIFTY50 Weekly Return)<\/p>\n
Conclusion:
\nBased on the collected data and its analysis we can conclude that only 30 % of Piramal Enterprises Limited weekly returns can be explained by NIFITY50 weekly returns, remaining 70% is depend upon Piramal Enterprises Limited\u2019s fundamentals and policies. Also its evident that 1% increase in NIFTY50 returns will result in 1.49% increase in Piramal Enterprises Limited\u2019s return. F is 24.66 and the P value 0.9276 which is greater than 0.05 it means the overall model is not statistically significant at 5% level.<\/p>\n","protected":false},"excerpt":{"rendered":"
Regression Analysis of Weekly Returns between NIFTY50 and Piramal Enterprises Limited Title: Regression Relationship of Piramal Enterprises Limited (PEL) with NIFTY50. Author: Pooja Rajput. [1st year MMS (JDBIMS)] Introduction: Piramal Enterprises Limited (PEL) is one of India\u2019s leading diversified companies, with a presence in Financial Services and Pharmaceuticals. PEL\u2019s consolidated revenues were ~US$1.7 billion in… Continue reading Regression Analysis of Weekly Returns between NIFTY50 and Piramal Enterprises Limited<\/span><\/a><\/p>\n","protected":false},"author":93076,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[355],"class_list":["post-16382","post","type-post","status-publish","format-standard","hentry","category-finance","tag-jdbims","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16382","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\/93076"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16382"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16382\/revisions"}],"predecessor-version":[{"id":16466,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16382\/revisions\/16466"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16382"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}