CALCULATION OF BETA OF SAPPHIRE FOOD INDIA LIMITED COMPANY AND ITS SIGNIFICANCE<\/p>\n
Author:- Shrushti Todankar (MBA Finance)<\/p>\n
Introduction
\nSapphire Foods Limited India is one of the largest franchisees of Yum! Brands Inc. in the subcontinent, with a track record of successfully operating more than 700 KFC, Pizza Hut and Taco Bell restaurants across India, Sri Lanka and the Maldives. It was set up in September 2015. The owner of Sapphire Foods is Sanjay Purohit.<\/p>\n
Objective:- Relationship of Sapphire Foods Limited with Nifty 50<\/p>\n
Literature Review<\/p>\n
Indian Stock Market
\nDesigning an optimum portfolio is a complex task since it involves accurate forecasting of future stock returns and risks and making a suitable tradeoff between them. This paper proposes a systematic approach to designing portfolios using two algorithms, the critical line algorithm, and the hierarchical risk parity algorithm on eight sectors of the Indian stock market.(Jaydip Sen & Sidra Mehtab & Abhishek Dutta & Saikat Mondal (2022))<\/p>\n
Indian Volatility Forecasting Model
\nThe study adopted the multiple-factor model to build the Indian volatility forecasting model. The benchmark forecasting model (BMF) includes absolute daily returns (|RA|), daily high\u00e2\u20ac\u201clow range (HLR) and daily realized volatility (RV). The proxies of investors\u00e2\u20ac\u2122 sentiment considered in the study were India volatility index (IVIX), advance decline ratio (ADR), put-call open interest (PCOI) and their changes. (Kelvin Mutum (2020))<\/p>\n
DATA COLLECTION
\nData was collected by the National Stock Exchange site and Yahoo! Finance site (01\/04\/22-31\/03\/23)
\nThe data was manipulated from the friday closing prices of Sapphire Foods Limited company and Nifty 50
\nWeekly Returns of Nifty was termed as x.
\nWeekly Returns of Sapphire Foods Limited Company was termed as y.<\/p>\n
DATA ANALYSIS
\nWe can write the equation in the form of Y=a+b(X)
\nWhere, Y= Sapphire Foods limited Company
\n X= Nifty-50 Returns
\n a=intercept and b=slope
\nHence, the equation becomes,
\nX= 0.53+(-0.17)
\nSapphire Foods limited (Y) = (0.536-0.174) Nifty Weekly Returns
\nTstat= 0.33, N=50, R2 =0.01, F= 0.49, Significance value=0.48.
\nThe above relationship shows the relationship between Nifty and Sapphire Foods Limited Company. The equation says that there is an inverse relationship between X and Y.
\nWhen X rises Y also rises and vice versa.<\/p>\n
CONCLUSION
\nThe above equation in the Data Analysis explains the relationship between X (Nifty-50 Returns) and Y (Sapphire Foods Limited India Return).
\nIt can be seen that the beta value is -0.17 which is less than 1 which is good for long term investment.<\/p>\n
REFERENCE
\nKelvin Mutum (2020): Volatility Forecast Incorporating Investors\u00e2\u20ac\u2122 Sentiment and its Application in Options Trading Strategies: A Behavioural Finance Approach at Nifty 50 Index<\/p>\n
Sidra Mehtab & Jaydip Sen & Abhishek Dutta (2020): Stock Price Prediction Using Machine Learning and LSTM-Based Deep Learning Models<\/p>\n","protected":false},"excerpt":{"rendered":"
CALCULATION OF BETA OF SAPPHIRE FOOD INDIA LIMITED COMPANY AND ITS SIGNIFICANCE Author:- Shrushti Todankar (MBA Finance) Introduction Sapphire Foods Limited India is one of the largest franchisees of Yum! Brands Inc. in the subcontinent, with a track record of successfully operating more than 700 KFC, Pizza Hut and Taco Bell restaurants across India, Sri… Continue reading CALCULATION OF BETA OF SAPPHIRE FOOD INDIA LIMITED COMPANY AND ITS SIGNIFICANCE<\/span><\/a><\/p>\n","protected":false},"author":112032,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-17472","post","type-post","status-publish","format-standard","hentry","category-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17472","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\/112032"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17472"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17472\/revisions"}],"predecessor-version":[{"id":17506,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17472\/revisions\/17506"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17472"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}