Calculation of Beta for DK enterprises and Its Significance
\nAuthor\u2019s Name: Disha Kewale
\nIntroduction
\nD.K. Enterprises Global Limited is a leading manufacturer of leading paper base packaging materials. Self adhesive tapes and laminated products out of its manufacturing facilities in Haryana, Gujarat and Himachal Pradesh.
\nObjectives
\nTo calculate beta of D.K. Enterprises and its significance.
\nData Collection
\nData collection for the period starting from 1st December 2021 to 30th November 2022 has been downloaded from nse.com. Then Friday weekly Closing Prices have been calculated.
\nAnd weekly data of equity share of the chosen company has been regressed on weekly report of NIFTY50.
\nData Analysis
\nRegression Equation that was formed after the calculations is-
\n=-7.8971NiftyX-56.97+e
\n (-0.292)
\nWhere,\t\tN=50;\t\tR2=0.0017\tF=0.085<\/p>\n
Interpretation
\nThe equation mentioned above tells us about the relationship between Nifty50 value and D.K. Enterprises stock prices.
\nPresence of Negative sign in the equation represents that there\u2019s inverse relationship between the two i.e., if the value of NIFTY50 falls, stock price of D.K. Enterprises will also decline. The Co-efficient of NIFTY is -7.8971 which means if NIFTY by -7.8971 units the stock price of D.K. Enterprises will decline by 1 unit and vice versa.
\nTotal Number of Observations are 50.
\nFigure in the bracket is T-stat and the P-Value of which is 0.771 which is greater than 0.05 which means p is statistically insignificant at 3% level. Also, it is greater than 0.01 so we can say that p is statistically insignificant at 1% level.
\nR2 is 0.0017 which means 0.17% of DK(Y) is explained by NIFTY(X) balance 99.83% is error. Error here is due to variables which aren\u2019t in the model.
\nF is 0.085 the P-Value for which is 0.771 which is greater than 0.01 which means overall the model is statistically significant.
\nConclusion
\nAs from the above mentioned regression equation it can be observed that the Beta is -7.897 which is less than 1 which states the fact that it is NOT good for investment in short term.<\/p>\n","protected":false},"excerpt":{"rendered":"
Calculation of Beta for DK enterprises and Its Significance Author\u2019s Name: Disha Kewale Introduction D.K. Enterprises Global Limited is a leading manufacturer of leading paper base packaging materials. Self adhesive tapes and laminated products out of its manufacturing facilities in Haryana, Gujarat and Himachal Pradesh. Objectives To calculate beta of D.K. Enterprises and its significance.… Continue reading D.K. enterprises analysis assignment 2<\/span><\/a><\/p>\n","protected":false},"author":108393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[1720],"class_list":["post-16936","post","type-post","status-publish","format-standard","hentry","category-finance","tag-dk-enterprises","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16936","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\/108393"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16936"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16936\/revisions"}],"predecessor-version":[{"id":16950,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16936\/revisions\/16950"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16936"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}