Calculation of Beta for Vodafone Idea and Its Significance
\nAuthor\u2019s Name: Vidushi Sahu
\nIntroduction
\nVodafone Idea is an Indian telecom operator with its headquarters based in Mumbai and Gandhinagar. It is a pan-India integrated GSM operator offering 2G, 3G, 4G, 4G+, VoLTE, and VoWiFi service. As of 31 October 2022, Vi has a subscriber base of 245.62 million, making it third largest mobile telecommunications network in India and 11 th largest mobile telecommunications network in the world.[14] The company was created on 31 August 2018 by the merger of Vodafone India and Idea Cellular, to form a new entity named Vodafone Idea Limited.
\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=1.556+1.385 weekly return of nifty+ e
\n(4.26)
\nWhere, N=49; R2=0.278 F=18.148<\/p>\n
Interpretation
\nThe equation mentioned above tells us about the relationship between Nifty50 value and Vodafone Idea 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 Vodafone Idea will also decline. The Co-efficient of NIFTY is 1.385 which means if NIFTY by 1.385 units the stock price of Vodafone Idea 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
\nwhich is less than 0.05 which means p is statistically significant at 5% level. Also, it is less than 0.01 so we can say that p is statistically significant at 1% level.
\nR2 is 0.278 which means 0.27% of VI(Y) is explained by NIFTY(X) balance 99.73% is error. Error here is due to variables which aren\u2019t in the model.
\nF is 18.148 the P-Value for which is 0 which is less 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 1.385 which is more than 1 which states the fact that it is good for investment in short term.<\/p>\n","protected":false},"excerpt":{"rendered":"
Calculation of Beta for Vodafone Idea and Its Significance Author\u2019s Name: Vidushi Sahu Introduction Vodafone Idea is an Indian telecom operator with its headquarters based in Mumbai and Gandhinagar. It is a pan-India integrated GSM operator offering 2G, 3G, 4G, 4G+, VoLTE, and VoWiFi service. As of 31 October 2022, Vi has a subscriber base… Continue reading Calculation of Beta for Vodafone Idea and Its Significance<\/span><\/a><\/p>\n","protected":false},"author":108707,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[384],"class_list":["post-16953","post","type-post","status-publish","format-standard","hentry","category-finance","tag-itm","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16953","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\/108707"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16953"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16953\/revisions"}],"predecessor-version":[{"id":16954,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16953\/revisions\/16954"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16953"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}