\n Return<\/b>=<\/span><\/i><\/b><\/span><\/span>Y<\/span><\/i><\/b>t+1<\/span><\/i><\/b>–<\/span><\/i><\/b><\/span>Y<\/span><\/i><\/b>t<\/span><\/i><\/b><\/span>Y<\/span><\/i><\/b>t<\/span><\/i><\/b>\u00d7100<\/span>
\n <\/span><\/i><\/b><\/p>\n
<\/span>
<\/b><\/p>\n
The weekly returns of the NIFTY 50 were taken as the independent variable (X), and the weekly returns of Siemens Limited were taken as the dependent variable (Y). A linear regression model was applied by regressing Y on X.<\/p>\n
\u00a0<\/p>\n
Data Analysis:<\/b><\/p>\n
Siemens Returns=2.5646+2.0145(NIFTY 50)<\/b><\/p>\n
\u00a0<\/p>\n
o\u00a0\u00a0 <\/span><\/span><\/span>The regression analysis is based on 48 weekly observations. The beta coefficient (\u03b2) of Siemens Limited is 2.0145, which indicates a strong positive relationship between Siemens\u2019 stock returns and market returns.<\/p>\n o\u00a0\u00a0 <\/span><\/span><\/span>The beta value greater than 1 signifies that Siemens Limited is an aggressive stock, meaning its returns are more volatile than the market. A 1% change in NIFTY 50 returns leads to an average change of approximately 2.01% in Siemens\u2019 returns.<\/p>\n o\u00a0\u00a0 <\/span><\/span><\/span>The t-statistic (2.16) and p-value (0.036) indicate that the beta coefficient is statistically significant at the 5% level. This confirms that market movements have a meaningful impact on Siemens\u2019 stock returns.<\/p>\n o\u00a0\u00a0 <\/span><\/span><\/span>The R-square value of 0.092 suggests that approximately 9.2% of the variation in Siemens\u2019 returns is explained by movements in the NIFTY 50 index. Although the explanatory power is moderate, the F-statistic (4.664) with a significance value of 0.036 confirms that the regression model is statistically significant.<\/p>\n \u00a0<\/p>\n Conclusion:<\/b><\/p>\n o\u00a0\u00a0 <\/span><\/span><\/span>The study reveals a positive and statistically significant relationship between Siemens Limited\u2019s returns and the NIFTY 50 index. The estimated beta coefficient of 2.0145 indicates that Siemens Limited is highly sensitive to market movements and carries higher systematic risk compared to the market. This aggressive nature implies that Siemens\u2019 stock is likely to outperform the market during bullish phases but may underperform during market downturns.<\/p>\n o\u00a0\u00a0 <\/span><\/span><\/span>Despite a relatively modest R\u00b2 value, the significant beta and F-statistic validate the applicability of the CAPM framework for Siemens Limited. Overall, Siemens Limited demonstrates strong market dependence, making it suitable for investors with higher risk appetite seeking amplified returns in favorable market conditions.<\/p>\n \u00a0<\/p>\n References:<\/b><\/p>\n o\u00a0\u00a0 <\/span><\/span><\/span>Saniya Marwah. (2022). Relationship between Firm\u2019s Financial Performance and Share Prices: Evidence from Oil and Gas Sector. Book: A Flourishing Digital Era: Innovations in Industry, Education, Management and Society, Volume I \u2013 2022.<\/p>\n o\u00a0\u00a0 <\/span><\/span><\/span>Daniel Casado Ginard. (2024). Econometric Analysis of the Evolution of Market Risk Premium. Revista de Economia y Finanzas (REyF), Vol. 2, No. 4 (January\u2013April 2024).<\/p>\n","protected":false},"excerpt":{"rendered":" Title: Relationship of NIFTY 50 with Siemens Limited \u00a0 Author: Savita Singh \u00a0 Introduction: This study examines the relationship between the NIFTY 50 index and Siemens Limited, focusing on the systematic risk associated with Siemens\u2019 stock returns. As Siemens Limited is a prominent engineering and technology company in India, its performance is expected to reflect… Continue reading Relationship of NIFTY 50 with Siemens Limited<\/span><\/a><\/p>\n","protected":false},"author":139996,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23330","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23330","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\/139996"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23330"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23330\/revisions"}],"predecessor-version":[{"id":23331,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23330\/revisions\/23331"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23330"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}