{"id":19473,"date":"2023-12-27T19:49:36","date_gmt":"2023-12-27T14:19:36","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=19473"},"modified":"2023-12-27T19:49:36","modified_gmt":"2023-12-27T14:19:36","slug":"report-on-relationship-correlation-and-regression-relation-between-weekly-closing-returns-of-nse-nifty-50-index-and-suzlon-energy-ltd","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=19473","title":{"rendered":"Report on Relationship correlation and regression relation between Weekly closing returns of NSE NIFTY 50 index and Suzlon Energy LTD."},"content":{"rendered":"

Research Methodology Report<\/strong><\/p>\n

On<\/strong><\/p>\n

The correlation and regression relation between Weekly closing <\/strong><\/p>\n

returns of NSE NIFTY 50 index and Suzlon Energy LTD.<\/strong><\/p>\n

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Submitted on the fulfilment of Research and Analysis.<\/strong><\/p>\n

Author: Saurabh Lad<\/strong><\/p>\n

Roll no.: 21230023185<\/strong><\/p>\n

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Under the guidance of <\/strong><\/p>\n

Prof. J.K. Sachdeva<\/strong><\/p>\n

Research Methodology<\/strong><\/p>\n

ITM Navi Mumbai, Kharghar<\/strong><\/p>\n

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Institute of Technology & Management<\/strong>\u00a0(ITM)<\/strong> Business School<\/strong><\/p>\n

Kharghar, Navi Mumbai, Maharashtra<\/strong><\/p>\n

Financial Management-1<\/strong><\/p>\n

Batch of 2023-25<\/strong><\/p>\n

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Declaration<\/h3>\n

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I, declare that this written submission represents my ideas in our own words and where other\u2019s ideas or words have been included, I have adequately cited and referenced the original sources. I also declare that we have adhered to all principles of ethics, honesty and integrity and have not misrepresented or fabricated or falsified any idea\/data\/fact\/source in our submission. I understand that any violation of the above will be cause for disciplinary action by the Institute and can also evoke penal action from the sources which have thus not been properly cited or from whom proper permission has not been taken when needed.<\/p>\n

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Saurabh Lad<\/p>\n

Financial Management-1<\/p>\n

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Date:\u00a0 26\/12\/2023<\/strong><\/p>\n

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Place:<\/strong> Kharghar, Navi Mumbai, Maharashtra.<\/p>\n

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Introduction to Suzlon Energy LTD.<\/p>\n

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Suzlon Energy Limited<\/strong>\u00a0is an Indian multi-national wind turbine\u00a0manufacturer headquartered in Pune, India.<\/p>\n

It was formerly ranked by MAKE as the world’s fifth largest wind turbine supplier. Suzlon crossed 11,000 megawatts of cumulative installations in India.\u00a0Suzlon has cumulatively added over 11000 megawatts of wind power capacity for over 1,700 customers in India across 40 sites in eight States. Suzlon accounts for nearly one-third of the country’s total wind installations. Suzlon’s over 27 years in\u00a0providing renewable energy solutions and deep knowledge of wind energy\u00a0has helped it to become of the world’s largest and leading producers of wind turbines in the world.<\/p>\n

Objective of the report<\/p>\n

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To calculate the value of Beta and determine the significance of Suzlon Energy Ltd. with respect to NSE Nifty 50.<\/p>\n

Reviews<\/p>\n

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Procedure for Data collection<\/strong><\/p>\n

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I decided to collect the data from NSE official website.<\/p>\n

So for Nifty 50, I logged into the NSE website and then clicked on to historical data and then I selected Custom Data Selection. From the dropdown menu, I selected the data from date 01 November, 2022 to 31 October, 2023. Then, date wise each day opening, closing stock Price were displayed. I downloaded the .csv file of the same duration. I cleared the opening stock and other columns and then I selected all the Friday closing stock prices by using weekday formula of excel.<\/p>\n

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The formulas was =weekday(date,2) where 2 represented \u201cTuesday\u201d, 3 represented \u201cWednesday\u201d, etc. likewise. I kept only the data of \u201cFriday\u201d.<\/p>\n

Then I calculated the weekly returns of each week in the excel sheet for Nifty 50 as well as Suzlon Energy Ltd. Then I denoted,<\/p>\n

Weely Return of NSE= (X)<\/p>\n

Weely Return of Suzlon Energy Ltd= (Y)<\/p>\n

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Following the above notations I regressed \u201cY\u201d on \u201cX\u201d. Then from the Data Tab> Data Analysis, I displayed the ANOVA Table of the Given data.<\/p>\n

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Formulas<\/strong><\/p>\n

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  1. Day calculation: =weekday(date,2)<\/li>\n
  2. Weekly returns: (Current closing value \u2013 previous week closing value)\/ previous week closing value*100.<\/li>\n
  3. Beta = Covariance (Return on stock, return on market index)\/Variance of market.<\/li>\n
  4. beta= cov(ri, rm) <\/u><\/li>\n<\/ol>\n

    \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 var (market)\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

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    \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ={ri \u2013 mean of ri}{rm- mean of rm}\/no of items<\/u><\/p>\n

    \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 {(rm- mean of rm)^2}\/no of items.<\/p>\n

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    Data analysis on basis of Beta<\/strong><\/p>\n

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    Hence on making the above calculations we get the beta for the company =-0.65 which is less than 1, that indicates that the company is less volatile in nature hence it is suitable for long-term investments.<\/p>\n

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    By applying the ANOVA on the above data obtained we obtained the correlation between the stock and market return -0.064 which indicates there is a slightly negative relation between the movement of price of stock and market movements. Similarly, we obtained the F value and P value to be 0.197 and .6586 respectively.<\/p>\n

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    Research Methodology Report On The correlation and regression relation between Weekly closing returns of NSE NIFTY 50 index and Suzlon Energy LTD. \u00a0 \u00a0 Submitted on the fulfilment of Research and Analysis. Author: Saurabh Lad Roll no.: 21230023185 \u00a0 Under the guidance of Prof. J.K. Sachdeva Research Methodology ITM Navi Mumbai, Kharghar \u00a0 \u00a0 \u00a0… Continue reading Report on Relationship correlation and regression relation between Weekly closing returns of NSE NIFTY 50 index and Suzlon Energy LTD.<\/span><\/a><\/p>\n","protected":false},"author":139155,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-19473","post","type-post","status-publish","format-standard","hentry","category-career","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19473","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\/139155"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19473"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19473\/revisions"}],"predecessor-version":[{"id":19474,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19473\/revisions\/19474"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19473"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}