Relationship between Nifty50 and Varun Beverages <\/p>\n
Author: Vraj Naik<\/p>\n
Introduction: Varun Beverages Ltd has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchise of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks owned by PepsiCo.
\nPepsiCo brands produced and sold by the company include Pepsi, Seven-up, Mirinda Orange, Mountain Dew, Tropicana Juices and many more.<\/p>\n
Objective: To calculate beta of Varun Beverages and its significance<\/p>\n
Data Collection: Data of Varun Beverages (Varun Beverages Limited) from 01-12-2021 to 30-11-2022 downloaded 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
\nData Analysis:
\nWeekly Return of = 0.838+0.356Weekly Return of Nifty + E
\n\u2022\tt-stat = 0.991998071
\n\u2022\tR2 = 0.020089396
\n\u2022\tF = 0.984060175
\n\u2022\tN = 50
\nThe above equation tells us about the relationship between Weekly Return of Varun Beverages Weekly Return of Nifty. The positive sign means that there is a direct relationship. If nifty rises, Varun Beverages also rises and if nifty falls, Varun Beverages will also fall. The co-efficient of weekly return of nifty is 0.356, which means if nifty rises by 1 unit, Varun Beverages will also rise by 0.356 units and vice versa.<\/p>\n
\u2022\tNumber of Observations are 50 and t-stat is 0.991998071
\n\u2022\tP value is 0.326173028, which is more than 0.05, means that b is statistically insignificant at 5%. Even it is more than 0.01, b is statistically insignificant at 1% level
\n\u2022\tR2 is 0.020089396, which means that 2.009% of Y (Varun Beverages) is explained by X (nifty), balance of 97.991% is error. Error is due to the variables which are not in the model.
\n\u2022\tF is 0.984 , the P value for which is 0.326> 0.01, means overall the model is statistically insignificant.<\/p>\n
Conclusion:
\nSince b = 0.838 is less than 1, it is statistically insignificant.
\nVarun Beverages is a good option for investment because for every increase in nifty there will be an increase in the equity of Varun Beverages.<\/p>\n","protected":false},"excerpt":{"rendered":"
Relationship between Nifty50 and Varun Beverages Author: Vraj Naik Introduction: Varun Beverages Ltd has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchise of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and… Continue reading Relationship between Nifty 50 and Varun Beverages Ltd<\/span><\/a><\/p>\n","protected":false},"author":108101,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70],"tags":[],"class_list":["post-16960","post","type-post","status-publish","format-standard","hentry","category-micro-economics","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16960","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\/108101"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16960"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16960\/revisions"}],"predecessor-version":[{"id":16990,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16960\/revisions\/16990"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16960"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}