CALCULATION OF BETA OF VOLTAS LIMITED AND ITS SIGNIFICANCE<\/p>\n
NAME OF THE AUTHOR: Varun Aadarsh Bhargav<\/p>\n
INTRODUCTION:
\nVoltas Limited is a six-decade old company in India with expertise in Air Conditioning & Cooling technology. Beko, on the other hand, is an international home appliance brand of the Ar\u00e7elik Group owned by Ko\u00e7 Holding – a Fortune Global 500 company in Europe.
\nWith Voltas strong foothold in the Indian market, the company understands the needs and requirements of modern consumers. From sales to service, Voltas can bridge all gaps. Our latest collaboration with Beko’s state-of-the-art R&D, patents and best-in-class technology, will ensure Voltas Beko is a brand that designs products and services with consumer-first approach. It’s an amalgamation of elegance and sophistication that\u2019s designed to simplify our consumers\u2019 everyday household needs.
\nOBJECTIVES
\nTo calculate beta of Voltas Limited and its significance<\/p>\n
DATA COLLECTION
\nData of Voltas Limited from 01-12-2021 to 30-11-2022 from NSE website
\n\u2022\tFriday weekly closing prices has been found out
\n\u2022\tWeekly Return have been calculated with the formula of (Y2-Y1)\/Y1*100
\n\u2022\tWeekly Return of Equity have been regressed on Weekly Return of Nifty<\/p>\n
DATA ANALYSIS
\nWeekly Return of Voltas LTD. = 0.770 + 0.907 Weekly Return of Nifty + E
\n\u2022\tt-stat = 1.5835
\n\u2022\tR2 = 0.0506
\n\u2022\tF = 2.507
\n\u2022\tN = 49
\nThe above equation tells us about the relationship between Weekly Return of Voltas LTD. and Weekly Return of Nifty. The positive sign means that there is a direct relationship. If nifty rises, equity rises and if nifty falls, equity falls. The co-efficient of weekly return of nifty is 0.907, which means if nifty rises by 1 unit, Voltas Ltd. will rise by 0.907 units and vice versa.
\nNumber of Observations are 49 and t-stat is 1.5835.
\nP value is 0, which is less than 0.0, means that b is statistically significant at 5%. Even if it is less than 0.01, b is statistically significant at 1% level.
\nR2 is 0.0506, which means that 5.06% of Y (Voltas Ltd.) is explained by X (nifty), balance of 94.94% is error. Error is due to the variables which are not in the model.
\nF is 2.507, the P value for which is 0 < 0.01, means overall the model is statistically significant.<\/p>\n
CONCLUSION
\nSince b = 0.907 is lesser than 1, it is not statistically significant.
\nVoltas Ltd. is not a good option for investment because for every increase in nifty there will not be an increase in the equity of Voltas Ltd.<\/p>\n","protected":false},"excerpt":{"rendered":"
CALCULATION OF BETA OF VOLTAS LIMITED AND ITS SIGNIFICANCE NAME OF THE AUTHOR: Varun Aadarsh Bhargav INTRODUCTION: Voltas Limited is a six-decade old company in India with expertise in Air Conditioning & Cooling technology. Beko, on the other hand, is an international home appliance brand of the Ar\u00e7elik Group owned by Ko\u00e7 Holding – a… Continue reading CALCULATION OF BETA OF VOLTAS LIMITED AND ITS SIGNIFICANCE<\/span><\/a><\/p>\n","protected":false},"author":108552,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-16934","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16934","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\/108552"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16934"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16934\/revisions"}],"predecessor-version":[{"id":16951,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16934\/revisions\/16951"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16934"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}