Title: Relationship of Red Tape and Nifty 50<\/u><\/p>\n
Author: Rutuja Sawant<\/u><\/p>\n
\u00a0<\/strong>Introduction<\/strong><\/p>\n Red Tape is a company that has recently gone public on the stock market. With a focus on simplifying complex processes and reducing bureaucracy, Red Tape has made a name for itself in industry. Despite its young age, the company has already shown impressive growth and potential for future success. As a publicly traded company, Red Tape is now more accessible to investors and customers alike, poised to make a significant impact on the market. With a strong leadership team and innovative approach, Red Tape is a company to watch in the coming years.<\/p>\n Objective<\/strong><\/p>\n To find out beta of Red Tape and its significance<\/p>\n Data Collection<\/strong><\/p>\n Data of Red Tape and Nifty 50 was downloaded from NSE site for the period of 1st<\/sup> May 2023 to 30th<\/sup> April 2024.<\/p>\n Found out weekly Friday prices of Nifty 50 and Red Tape<\/p>\n Weekly returns were calculated from the formulae.<\/p>\n ( Yt+1 <\/sub>\u00a0– Yt<\/sub> ) Yt<\/sub> * 100<\/p>\n Weekly return of Nifty 50 termed as \u201cx \u201c<\/p>\n Weekly return of Red Tape is termed as ” y \u201c<\/p>\n Y was regress on X<\/p>\n Data Analysis<\/strong><\/p>\n Weekly return of Red Tape = (1.19) + 0.30 Weekly return of Nifty 50<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1.083)<\/p>\n N = 32, R2<\/sup> = 0.005, F = 0.16, P value = 0.6889<\/p>\n The above equation shows the relationship between Nifty 50 and Red Tape. Positive sign before the coefficient of Nifty 50 tells us that there is a positive relationship if Nifty 50 rises 1-unit, Red Tape will rise by 0.30 units and vice versa. Figure in bracket is tstat for beta and the P value for which is 0.28 which is more than 0.05 meaning beta is statistically significant. N = 32, R2<\/sup> = 0.005 which means 0.5% of Red Tape\u2019s returns are explained by Nifty 50. F = 0.16 and P value for that is 0.28 it is more than 0.05 meaning overall model is statistically significant at 5% level.<\/p>\n Conclusion<\/strong><\/p>\n Beta is negative then avoid doing any investment.<\/p>\n","protected":false},"excerpt":{"rendered":" Title: Relationship of Red Tape and Nifty 50 Author: Rutuja Sawant \u00a0Introduction Red Tape is a company that has recently gone public on the stock market. With a focus on simplifying complex processes and reducing bureaucracy, Red Tape has made a name for itself in industry. Despite its young age, the company has already shown… Continue reading Relationship of Red Tape and Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139422,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-21391","post","type-post","status-publish","format-standard","hentry","category-investing","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21391","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\/139422"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21391"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21391\/revisions"}],"predecessor-version":[{"id":21392,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21391\/revisions\/21392"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21391"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}