CHAPTER – 4

DATA ANALYSIS
AND
INFERENCES
 DATA ANALYSIS

4.1 Data Analysis:

THE FOLLOWING ARE THE INTERPRETATIONS DONE TO
CALCULATE RETURN ON STOCK WITH RETURN OF SENSEX.

The following companies are taken for the Interpretation

Table 2. List of companies taken for interpretation

1 STATE
1. BANK OF INDIA
2 RELIANCE
COMMUNICATION LTD
3 ITC LTD
4 SHAREKHANLTD
5 BHEL
6 ICICI BANK
7 DR.REDDY’S
LABORATORIES LTD
8 BAJAJ AUTO LTD
9 BHARTI AIRTEL LTD
10 WIPRO LTD
 Table 3. Volatility of SBI

DATE STOCK STOCK SENSEX SENSEX X*Y X^2 Y^2

RETURN(Y) RETURN(X)
OPEN CLOSE OPEN CLOSE
PRICE PRICE PRICE PRICE

2/2/18 309.95 307.8 -0.693660268 29143.63 29122.27 -0.073292174 0.050839869 0.005372 0.48118457

3/2/18 311 300.18 -3.488745981 29217.4 29000.14 -0.743597993 2.594224509 0.552938 12.1713485

4/2/18 303 293.2 -3.234323432 29129.85 28883.11 -0.847034914 2.739584872 0.717468 10.4608481

5/2/18 293.5 290.8 -0.919931857 28912.38 28850.97 -0.212400363 0.19539386 0.045114 0.84627462

6/2/18 291.5 290.35 -0.394511149 28892.21 28717.91 -0.6032768 0.237999424 0.363943 0.18563905

9/2/18 290 279.75 -3.534482759 28566.5 28227.39 -1.187089773 4.195748336 1.409182 12.4925684

10/2/18 278 287.18 3.291366906 28122.48 28355.62 0.829018502 2.72859748 0.687268 10.8330961

11/2/18 290.5 286 -1.549053356 28450.26 28533.97 0.294232812 -0.455782325 0.086573 2.3995663

12/2/18 288.5 284.4 -1.421143847 28650.25 28805.1 0.54048394 -0.768105426 0.292123 2.01964984

13/2/18 287.6 307.05 6.76286509 28888.99 29094.93 0.712866736 4.821021861 0.508179 45.7363442

18/2/18 310.9 306.8 -1.31875201 29170.77 29135.88 -0.11960603 0.187730693 0.014306 1.73910686

18/2/18 307.2 305.55 -0.537109375 29136.07 29320.26 0.632171738 -0.339545367 0.399641 0.28848648

19/2/18 306.7 302.35 -1.418324095 29434.91 29462.27 0.092950853 -0.131834435 0.00864 2.01184324

20/2/18 302.3 302.25 -0.018539861 29446.21 29231.41 -0.729465694 0.012065261 0.53212 0.00027357

23/2/18 303.35 296.25 -2.34053074 29318.58 28975.11 -1.184767514 2.726174171 1.356683 5.47808418

24/2/18 297.6 296.18 -0.487231183 29018.55 29004.66 -0.040976618 0.019965085 0.001879 0.23739423

25/2/18 298 295.55 -0.822147651 29118.32 29007.99 -0.368637542 0.303074489 0.135894 0.67592676

26/2/18 297.9 289.55 -2.802954011 29051.9 28746.65 -1.050705806 2.945080053 1.103983 7.85655119

27/2/18 291.95 299.95 2.740195239 28865.12 29220.12 1.229858043 3.370051185 1.512551 7.50866995

28/2/18 305.5 301.6 -1.276595745 29411.33 29361.5 -0.189424504 0.218286601 0.028705 1.6296967

9.7623609
SUM -13.46181009 -2.978695098 25.61856987 94 125.022333

SCRIPT STATISTICS

BETA 2.534000754

STD Y 2.407920114

STD X 0.70032811

COVAR 1.180683413
COEF COR 0.700147962

Fig 2. SBI vs Sensex

2 RETURN Y

0 RETURN X

-2

-4
02-02-2018 to 28-02-2018

-6

Source - secondary data:

The above table shows the Volatility of SBI Returns. Since the beta of the
company is more, then it is more volatile. The value of the correlation coefficient is
always between -1 and +1.The Coefficient of Correlation of the company is 0.70. It
means that when market return increases, the company’s return also increases. A
positive or direct correlation indicates that the series move together, as one increases,
the other also increases. It is rare that one comes across perfect correlation, that is, a
correlation coefficient of exactly -1.0 or +1.0.
 Table 4.Volatility of Reliance Communication Ltd

REL. STOCK STOCK SENSEX SENSEX X*Y X^2 Y^2

RETURN RETURN(X)
COM OPEN CLOSE OPEN CLOSE
PRICE PRICE (Y) PRICE PRICE

2/2/18 80.18 80.55 0.499064255 29143.63 29122.27 -0.073292174 -0.036577504 0.005372 0.249065

3/2/18 -
81 77.7 4.074074074 29217.4 29000.14 -0.743597993 3.029473305 0.552938 18.59808

4/2/18 -
78.5 77.8 0.891719745 29129.85 28883.11 -0.847034914 0.755317758 0.717468 0.795184

5/2/18 -
78.1 72.4 7.298335467 28912.38 28850.97 -0.212400363 1.550189101 0.045114 53.2657

6/2/18 -
72.4 70.75 2.279005525 28892.21 28717.91 -0.6032768 1.374871181 0.363943 5.193866

9/2/18 -
70.7 67.6 4.384724187 28566.5 28227.39 -1.187089773 5.205061239 1.409182 19.22581

10/2/18 67.65 68.4 1.10864745 28122.48 28355.62 0.829018502 0.919087031 0.687268 1.229099

11/2/18 69.05 70.4 1.955104996 28450.26 28533.97 0.294232812 0.575256041 0.086573 3.822436

12/2/18 70.7 71.1 0.565770863 28650.25 28805.1 0.54048394 0.305790065 0.292123 0.320097

13/2/18 71.7 72.05 0.488145049 28888.99 29094.93 0.712866736 0.347982368 0.508179 0.238286

18/2/18 73.7 75.18 1.96743555 29170.77 29135.88 -0.11960603 -0.235317186 0.014306 3.870803

18/2/18 -
75.6 73.35 2.976190476 29136.07 29320.26 0.632171738 -1.881463505 0.399641 8.85771

19/2/18 -
74 71.35 3.581081081 29434.91 29462.27 0.092950853 -0.332864542 0.00864 12.82414

20/2/18 71.6 72 0.558659218 29446.21 29231.41 -0.729465694 -0.407522734 0.53212 0.3121

23/2/18 -
72.8 70.25 3.502747253 29318.58 28975.11 -1.184767514 4.079886209 1.356683 12.26924

24/2/18 -
70.65 68.75 2.689313517 29018.55 29004.66 -0.040976618 0.110198965 0.001879 7.232407

25/2/18 69.1 68.95 -0.2170767 29118.32 29007.99 -0.368637542 0.080022621 0.135894 0.047122

26/2/18 -
69 67.45 2.246376812 29051.9 28746.65 -1.050705806 2.360281188 1.103983 5.046209

27/2/18 68.1 69.7 2.34948605 28865.12 29220.12 1.229858043 2.889534318 1.512551 5.520085

28/2/18 -
70.45 68.45 2.838892832 29411.33 29361.5 -0.189424504 0.48097801 0.028705 8.059313

-
SUM 27.48722424 -2.978695098 21.17018391 9.762361 184.9767
 SCRIPT STATISTICS

BETA 1.832477314

STD Y 2.521897618

STD X 0.682595406

COVAR 0.853818045

COEF COR 0.495991823

Fig 3. Reliance vs sensex

RETURN Y
-2
RETURN X

-4

02-02-2018 to 28-02-2018
-6

-8

Source - secondary data:

The above table shows the Volatility of RELIANCE INDUSTRIES LTD
Returns. Since the beta of the company is more, then it is more volatile. The value of
the correlation coefficient is always between -1 and +1. The Coefficient of
Correlation of the company is 0.49. It means that when market return increases, the
company’s return also increases. A positive or direct correlation indicates that the
series move together, as one increases, the other also increases. It is rare that one
comes across perfect correlation, that is, a correlation coefficient of exactly -1.0 or +1.
 Table 5. Volatility of ITC

ITC STOCK STOCK SENSEX SENSEX X*Y X^2 Y^2

RETURN(Y) RETURN(X)
OPEN CLOSE OPEN CLOSE
PRICE PRICE PRICE PRICE
2/2/18 367.05 360.6 -1.75725378 29143.63 29122.27 -0.073292174 0.12879295 0.005372 3.087941

3/2/18 -
360 366.18 1.708333333 29217.4 29000.14 -0.743597993 1.270313238 0.552938 2.918403

4/2/18 367.9 366.55 -0.36694754 29129.85 28883.11 -0.847034914 0.310817378 0.717468 0.13465

5/2/18 -
368 368.65 0.176630435 28912.38 28850.97 -0.212400363 0.037518368 0.045114 0.031198

6/2/18 -
367 373.5 1.771117186 28892.21 28717.91 -0.6032768 1.068473897 0.363943 3.136856

9/2/18 372.5 367.85 -1.248322148 28566.5 28227.39 -1.187089773 1.481870455 1.409182 1.558308

10/2/18 368.05 369.9 0.502649097 28122.48 28355.62 0.829018502 0.418704396 0.687268 0.252656

11/2/18 370 371.35 0.364864865 28450.26 28533.97 0.294232812 0.107355218 0.086573 0.133126

12/2/18 -
371 370.6 -0.107818712 28650.25 28805.1 0.54048394 0.058273201 0.292123 0.011824

13/2/18 371.1 378.05 1.872810563 28888.99 29094.93 0.712866736 1.335064353 0.508179 3.507419

18/2/18 -
377 389.55 3.328912467 29170.77 29135.88 -0.11960603 0.398188005 0.014306 11.08186

18/2/18 385.5 392.5 1.818823606 29136.07 29320.26 0.632171738 1.147912364 0.399641 3.297218

19/2/18 -
393 389.1 -0.992366412 29434.91 29462.27 0.092950853 0.092241305 0.00864 0.984791

20/2/18 -
385.8 395.9 2.617936755 29446.21 29231.41 -0.729465694 1.909695051 0.53212 6.853593

23/2/18 395.9 390.18 -1.452386966 29318.58 28975.11 -1.184767514 1.691893186 1.356683 2.109428

24/2/18 392 395.85 0.982142857 29018.55 29004.66 -0.040976618 -0.04024489 0.001879 0.964605

25/2/18 -
396 399.55 0.896464646 29118.32 29007.99 -0.368637542 0.330470524 0.135894 0.803649

26/2/18 398.7 395.65 -0.764986205 29051.9 28746.65 -1.050705806 0.803775447 1.103983 0.585204

27/2/18 395 393.8 -0.303797468 28865.12 29220.12 1.229858043 -0.37362776 1.512551 0.092293

28/2/18 393 361.25 -8.078880407 29411.33 29361.5 -0.189424504 1.368760307 0.028705 65.26831

9.762361 106.8129

SUM 0.964928181 -2.978695098 3.213731782

SCRIPT STATISTICS

BETA 0.360289782
 STD Y 2.310480177

STD X 0.682595406

COVAR 0.187872186

COEF COR 0.106442008

Fig 4. ITC vs Sensex

-2 RETURN Y

-4 RETURN X
02-02-2018 to 28-02-2018

-6

-8

-10

Source: secondary data:

The above table shows the Volatility of SHAREKHAN Returns. Since the beta
of the company is more, then it is more volatile. The value of the correlation
coefficient is always between -1 and +1. The Coefficient of Correlation of the
company is 0.10. It means that when market return increases, the company’s
return also increases. A positive or direct correlation indicates that the series
move together, as one increases, the other also increases. It is rare that one
comes across perfect correlation, that is, a correlation coefficient of exactly -1.0
or +1.0.
 Table 6.Volatility of Share khan

HERO STOCK STOCK SENSEX SENSEX X*Y X^2 Y^2

MOTOR RETURN(Y) RETURN(X)
CORP OPEN CLOSE OPEN CLOSE
PRICE PRICE PRICE PRICE

2/2/18 2874.5 2834.4 -1.395025222 29143.63 29122.27 -0.073292174 0.102244431 0.005372 1.946095

3/2/18 2848.65 2812.35 -1.274287821 29217.4 29000.14 -0.743597993 0.947557866 0.552938 1.623809

4/2/18 -
2780 2829.9 1.794964029 29129.85 28883.11 -0.847034914 1.520397202 0.717468 3.221896

5/2/18 -
2829 2847.05 0.638034641 28912.38 28850.97 -0.212400363 0.135518789 0.045114 0.407088

6/2/18 2855 2779.5 -2.644483363 28892.21 28717.91 -0.6032768 1.595355461 0.363943 6.993292

9/2/18 2767 2728.5 -1.391398627 28566.5 28227.39 -1.187089773 1.65171808 1.409182 1.93599

10/2/18 2714.18 2720.65 0.239485658 28122.48 28355.62 0.829018502 0.198537563 0.687268 0.057353

11/2/18 2724.35 2752.45 1.031438692 28450.26 28533.97 0.294232812 0.303483107 0.086573 1.063866

12/2/18 2760 2805.35 1.643118942 28650.25 28805.1 0.54048394 0.888077778 0.292123 2.69983

13/2/18 2845 2852.5 0.263620387 28888.99 29094.93 0.712866736 0.187926204 0.508179 0.069496

18/2/18 2830 2806.25 -0.839222618 29170.77 29135.88 -0.11960603 0.100376085 0.014306 0.704295

18/2/18 -
2718 2663.45 -1.898710866 29136.07 29320.26 0.632171738 1.200311347 0.399641 3.605103

19/2/18 -
2677 2667.2 -0.366081434 29434.91 29462.27 0.092950853 0.034027582 0.00864 0.134018

20/2/18 2665 2659.85 -0.193245779 29446.21 29231.41 -0.729465694 0.140966186 0.53212 0.037344

23/2/18 2660 2646.8 -0.496240602 29318.58 28975.11 -1.184767514 0.578004932 1.356683 0.246255

24/2/18 2655.4 2651.2 -0.188188261 29018.55 29004.66 -0.040976618 0.0064812 0.001879 0.025017

25/2/18 2670 2625.55 -1.664794007 29118.32 29007.99 -0.368637542 0.613705571 0.135894 2.771839

26/2/18 2630.1 2625.65 -0.189195088 29051.9 28746.65 -1.050705806 0.177774261 1.103983 0.028627

27/2/18 2630 2670.35 1.534220532 28865.12 29220.12 1.229858043 1.886873462 1.512551 2.353833

28/2/18 -
2673.95 2682.65 0.325361357 29411.33 29361.5 -0.189424504 0.055124187 0.028705 0.10586

6.43370006 9.762361 30.0306

SUM -5.020612444 -2.978695098

SCRIPT STATISTICS

BETA 0.610184318
 STD Y 1.199380599

STD X 0.682595406

COVAR 0.284297819

COEF COR 0.34725871

Fig 5.SharekhanLtd vs Sensex

2.5
2
1.5
1
0.5
0 RETURN Y
-0.5 RETURN X
-1
-1.5
-2
-2.5 02-02-2018 to 28-02-2018
-3

Source: secondary data:

The above table shows the Volatility of Sharekhan Returns. Since the beta of the
company is more, then it is more volatile. The value of the correlation coefficient is
always between -1 and +1. The Coefficient of Correlation of the company is 0.34. It
means that when market return increases, the company’s return also increases. A
positive or direct correlation indicates that the series move together, as one increases,
the other also increases. It is rare that one comes across perfect correlation, that is, a
correlation coefficient of exactly -1.0 or +1.0.
 Table 7. Volatility of BHEL

BHEL STOCK STOCK SENSEX SENSEX X*Y X^2 Y^2

RETURN(Y) RETURN(X)
OPEN CLOSE OPEN CLOSE
PRICE PRICE PRICE PRICE

2/2/18 -
291.8 293.65 0.633995888 29143.63 29122.27 -0.073292174 0.049689609 0.005372 0.401951

3/2/18 295 297 0.677966102 29217.4 29000.14 -0.743597993 3.338094843 0.552938 0.459638

4/2/18 298.5 285.1 -4.489112228 29129.85 28883.11 -0.847034914 2.229039248 0.717468 20.18213

5/2/18 285 277.5 -2.631878947 28912.38 28850.97 -0.212400363 1.017990928 0.045114 6.925208

6/2/18 277.5 264.2 -4.792792793 28892.21 28717.91 -0.6032768 0.520066207 0.363943 22.97086

9/2/18 -
261 258.75 -0.862068966 28566.5 28227.39 -1.187089773 1.470649351 1.409182 0.743183

10/2/18 -
258.3 261.5 1.238869532 28122.48 28355.62 0.829018502 2.336147036 0.687268 1.534798

11/2/18 262.6 255.2 -2.817974105 28450.26 28533.97 0.294232812 1.702077273 0.086573 7.940978

12/2/18 253.25 267.9 5.784797631 28650.25 28805.1 0.54048394 1.841090712 0.292123 33.46388

13/2/18 -
251 259.55 3.406374502 28888.99 29094.93 0.712866736 0.082396463 0.508179 11.60339

18/2/18 -
259.55 259.25 -0.118584666 29170.77 29135.88 -0.11960603 0.034634951 0.014306 0.01336

18/2/18 259 259.75 0.28957529 29136.07 29320.26 0.632171738 0.40118591 0.399641 0.083854

19/2/18 260 261.65 0.634618385 29434.91 29462.27 0.092950853 0.431178863 0.00864 0.402737

20/2/18 263 275.2 4.63878327 29446.21 29231.41 -0.729465694 1.092881818 0.53212 21.51831

23/2/18 -
277 272.85 -1.498194946 29318.58 28975.11 -1.184767514 2.113876881 1.356683 2.244588

24/2/18 272.75 277.7 1.814848763 29018.55 29004.66 -0.040976618 0.065474304 0.001879 3.293676

25/2/18 278.5 274.05 -1.597845601 29118.32 29007.99 -0.368637542 1.08860318 0.135894 2.553111

26/2/18 -
272.6 264.55 -2.953044754 29051.9 28746.65 -1.050705806 2.036558111 1.103983 8.720473

27/2/18 265.7 270.85 1.938276251 28865.12 29220.12 1.229858043 -5.74679122 1.512551 3.756918

28/2/18 275 262.18 -4.672727273 29411.33 29361.5 -0.189424504 0.910287646 0.028705 21.83438

170.6174

SUM -5.372821867 -2.978695098 0.767227288 9.762360994

SCRIPT STATISTICS

BETA 1.941048838
STD Y 2.908384779

STD X 0.682595406

COVAR -0.558089788

COEF COR -0.281118128

Fig 6. BHEL vs Sensex

2 RETURN Y

0 RETURN X

-2

-4

-6 02-02-2018 to 28-02-2018

Source: secondary data:

The above table shows the Volatility of BHEL Returns. Since the beta of the
company is more, then it is more volatile. The value of the correlation
coefficient is always between -1 and +1. The Coefficient of Correlation of the
company is -0.28. It means that when market return increases, the company’s
return also decreases.. A negative correlation indicates that the series move
away, as one increases, the other decreases. It is rare that one comes across
perfect correlation, that is, a correlation coefficient of exactly -1.0 or +1.0.
 Table 8. Volatility of ICICI

ICICI STOCK STOCK SENSEX SENSEX X*Y X^2 Y^2

RETURN(Y) RETURN(X)
OPEN CLOSE OPEN CLOSE
PRICE PRICE PRICE PRICE

2/2/18 361 351.75 -0.073292174 29143.63 29122.27 -0.073292174 0.187798507 0.005372 6.565519

3/2/18 351.85 346.55 -0.743597993 29217.4 29000.14 -0.743597993 1.120099293 0.552938 2.269011

4/2/18 347.45 344.25 -0.847034914 29129.85 28883.11 -0.847034914 0.780118621 0.717468 0.848233

5/2/18 341.8 335.75 -0.212400363 28912.38 28850.97 -0.212400363 0.375957342 0.045114 3.133045

6/2/18 336 329.95 -0.6032768 28892.21 28717.91 -0.6032768 1.086257334 0.363943 3.242143

9/2/18 328.7 320.35 -1.187089773 28566.5 28227.39 -1.187089773 3.018576393 1.409182 6.453176

10/2/18 319.6 331.05 0.829018502 28122.48 28355.62 0.829018502 2.970037218 0.687268 12.83505

11/2/18 334.35 334.7 0.294232812 28450.26 28533.97 0.294232812 0.030800504 0.086573 0.010958

12/2/18 338 339.35 0.54048394 28650.25 28805.1 0.54048394 0.218873763 0.292123 0.189527

13/2/18 343.6 343.85 0.712866736 28888.99 29094.93 0.712866736 0.051867487 0.508179 0.005294

18/2/18 347.5 338.18 -0.11960603 29170.77 29135.88 -0.11960603 0.321817664 0.014306 7.239584

18/2/18 339 342.3 0.632171738 29136.07 29320.26 0.632171738 0.618388417 0.399641 0.947607

19/2/18 -
342.5 338.6 0.092950853 29434.91 29462.27 0.092950853 0.105841848 0.00864 1.296606

20/2/18 335.95 331.18 -0.729465694 29446.21 29231.41 -0.729465694 1.042248944 0.53212 2.041424

23/2/18 333.05 328.95 -1.184767514 29318.58 28975.11 -1.184767514 1.433882842 1.356683 1.518475

24/2/18 330.1 325.85 -0.040976618 29018.55 29004.66 -0.040976618 0.052756926 0.001879 1.657627

25/2/18 327 322.2 -0.368637542 29118.32 29007.99 -0.368637542 0.541119328 0.135894 2.184701

26/2/18 325.05 321.35 -1.050705806 29051.9 28746.65 -1.050705806 1.196004148 1.103983 1.295696

27/2/18 324 335 1.229858043 28865.12 29220.12 1.229858043 4.175443974 1.512551 11.52644

28/2/18 -
340.2 345.55 -0.189424504 29411.33 29361.5 -0.189424504 0.266437712 0.028705 2.473084

67.6702

SUM -11.38285325 -2.978695098 18.84076618 9.762360994

SCRIPT STATISTICS

BETA 1.839892787

STD Y 1.749187439

STD X 0.682595406

COVAR 0.857273184
COEF COR 0.718000082

Fig 7. ICICI vs Sensex

-2 RETURN Y
02-02-2018 to 28-02-2018
-4 RETURN X

-6

-8

-10

Secondary Data:
The above table shows the Volatility of ITC Returns. Since the beta of the company is
more, then it is more volatile. The value of the correlation coefficient is always
between -1 and +1. The Coefficient of Correlation of the company is 0.718. It means
that when market return increases, the company’s return also increases. A positive or
direct correlation indicates that the series move together, as one increases, the other
also increases. It is rare that one comes across perfect correlation, that is, a correlation
coefficient of exactly -1.0 or +1.0.
 Table 9. Volatility of Dr.Reddy’s Laboratories Ltd

DR. STOCK STOCK SENSEX SENSEX X*Y X^2 Y^2

RETURN RETURN
REDDY’S OPEN CLOSE OPEN CLOSE
LAB PRICE PRICE (Y) PRICE PRICE (X)

2/2/18 - -
3179.85 3138.45 1.301948205 29143.63 29122.27 0.073292174 0.095422614 0.005372 1.695069

3/2/18 - -
3119 3091.45 0.883295928 29217.4 29000.14 0.743597993 0.656817079 0.552938 0.780212

4/2/18 - -
3106 3102.35 0.117514488 29129.85 28883.11 0.847034914 0.099538874 0.717468 0.01381

5/2/18 - -
3105 3077.18 0.896940419 28912.38 28850.97 0.212400363 0.19051047 0.045114 0.804502

6/2/18 -
3080 3047.65 1.050324675 28892.21 28717.91 -0.6032768 0.633636509 0.363943 1.103182

9/2/18 - -
3065 3102.9 1.236541899 28566.5 28227.39 1.187089773 1.467885886 1.409182 1.529035

10/2/18 3100 3128.45 0.917741935 28122.48 28355.62 0.829018502 0.760823209 0.687268 0.84225

11/2/18 -
3188 3184.45 -0.11241292 28450.26 28533.97 0.294232812 0.033075569 0.086573 0.012637

12/2/18 3182 3327.5 4.572595852 28650.25 28805.1 0.54048394 2.471414622 0.292123 20.90863

13/2/18 - -
3370 3335.95 1.010385757 28888.99 29094.93 0.712866736 0.720270396 0.508179 1.020879

18/2/18 -
3348 3350.5 0.074671446 29170.77 29135.88 -0.11960603 0.008931185 0.014306 0.005576

18/2/18 3339 3354.7 0.470200659 29136.07 29320.26 0.632171738 0.297247568 0.399641 0.221089

19/2/18 3338.4 3383.6 1.353942008 29434.91 29462.27 0.092950853 0.125850065 0.00864 1.833189

20/2/18 - -
3400 3401.65 0.048529412 29446.21 29231.41 0.729465694 0.035400541 0.53212 0.002355

23/2/18 - -
3400 3381 0.558823529 29318.58 28975.11 1.184767514 0.650899493 1.356683 0.312284

24/2/18 - -
3380 3358.3 0.642011834 29018.55 29004.66 0.040976618 0.026307472 0.001879 0.412179

25/2/18 -
3360 3274.95 -2.53125 29118.32 29007.99 0.368637542 0.933113778 0.135894 6.407227

26/2/18 -
3251.1 3246.1 -0.1837941 29051.9 28746.65 1.050705806 0.181892354 1.103983 0.023653

27/2/18 3250 3274.7 0.76 28865.12 29220.12 1.229858043 0.934692113 1.512551 0.5776

28/2/18 -
3282.3 3349.65 - 29411.33 29361.5 0.189424504 -0.34764465 0.028705 4.210354
 42.71868
-
SUM 2.22743587 2.978695098 5.424658024 9.762360994

SCRIPT STATISTICS

BETA 0.617723744

STD Y 1.457182389

STD X 0.682595406

COVAR 0.314805779

COEF COR 0.318493956

Fig.8 Dr.Reddy’s Lab Ltd vs Sensex

2
RETURN Y
1
RETURN X
0

-1

-2 02-02-2018 to 28-02-2018

-3

Seconday data:
The above table shows the Volatility of ITC Returns. Since the beta of the company is
more, then it is more volatile. The value of the correlation coefficient is always
between -1 and +1. The Coefficient of Correlation of the company is 0.318. It means
that when market return increases, the company’s return also increases. A positive or
direct correlation indicates that the series move together, as one increases, the other
also increases. It is rare that one comes across perfect correlation, that is, a correlation
coefficient of exactly -1.0 or +1.0.
 Table 10. Volatility of Bajaj Auto Ltd

BAJAJ STOCK STOCK SENSEX SENSEX X*Y X^2 Y^2

RETURN(Y) RETURN(X)
AUTO OPEN CLOSE OPEN CLOSE
PRICE PRICE PRICE PRICE

2/2/18 2390 2347.8 -1.76569038 29143.63 29122.27 -0.073292174 0.129411 0.005372 3.117663

3/2/18 2356 2260.1 -4.0704584 29217.4 29000.14 -0.743597993 3.026785 0.552938 18.56863

4/2/18 2272 2247.55 -1.07614437 29129.85 28883.11 -0.847034914 0.911832 0.717468 1.188087

5/2/18 2255.55 2243.05 -0.55418856 28912.38 28850.97 -0.212400363 0.11771 0.045114 0.307125

6/2/18 2245.3 2228.25 -0.759364 28892.21 28717.91 -0.6032768 0.458107 0.363943 0.576634

9/2/18 2217.7 2267.55 2.24782432 28566.5 28227.39 -1.187089773 -2.66837 1.409182 5.052714

10/2/18 2258.7 2266.5 0.34533139 28122.48 28355.62 0.829018502 0.286285 0.687268 0.119254

11/2/18 2266.5 2291.95 1.12287668 28450.26 28533.97 0.294232812 0.330387 0.086573 1.260852

12/2/18 2292 2260.65 -1.36780105 28650.25 28805.1 0.54048394 -0.73927 0.292123 1.87088

13/2/18 2279.75 2261.75 -0.78956026 28888.99 29094.93 0.712866736 -0.56285 0.508179 0.623405

18/2/18 2256 2261.7 0.25265957 29170.77 29135.88 -0.11960603 -0.03022 0.014306 0.063837

18/2/18 2265 2240.65 -1.07505519 29136.07 29320.26 0.632171738 -0.67962 0.399641 1.185744

19/2/18 2246 2223.4 -1.0062333 29434.91 29462.27 0.092950853 -0.09353 0.00864 1.012505

20/2/18 2231.3 2209.3 -0.9859723 29446.21 29231.41 -0.729465694 0.719233 0.53212 0.972141

23/2/18 2220.5 2184.75 -1.60999775 29318.58 28975.11 -1.184767514 1.875273 1.356683 2.592093

24/2/18 2185 2191.95 0.3180778 29018.55 29004.66 -0.040976618 -0.01303 0.001879 0.101173

25/2/18 2218 2180.8 -1.67718665 29118.32 29007.99 -0.368637542 0.618274 0.135894 2.812955

26/2/18 2175.6 2134.95 -1.86845008 29051.9 28746.65 -1.050705806 1.963191 1.103983 3.491106

27/2/18 2145.9 2180.45 0.21203225 28865.12 29220.12 1.229858043 0.26077 1.512551 0.044958

28/2/18 2173 2181.8 -0.51841847 29411.33 29361.5 -0.189424504 0.087324 0.028705 0.265654

43.18741

SUM -14.6227188 -2.978695098 5.997384 9.762360994

SCRIPT STATISTICS

BETA 0.40987917

STD Y 1.12753394

STD X 1.2742884

COVAR 0.19097766

COEF COR 0.13291843

 Fig 9. Bajaj Auto Ltd vs Sensex

0
RETURN Y
-1
RETURN X
-2
02-02-2018 to 28-02-2018
-3

-4

-5

Secondary data:
The above table shows the Volatility of ITC Returns. Since the beta of the company is
more, then it is more volatile. The value of the correlation coefficient is always
between -1 and +1. The Coefficient of Correlation of the company is 0.132. It means
that when market return increases, the company’s return also increases. A positive or
direct correlation indicates that the series move together, as one increases, the other
also increases. It is rare that one comes across perfect correlation, that is, a correlation
coefficient of exactly -1.0 or +1.0.
 Table 11.Volatility of Bharti Airtel Ltd

BHARTI STOCK STOCK SENSEX SENSEX X*Y X^2 Y^2

AIRTEL RETURN RETURN
OPEN CLOSE OPEN CLOSE
PRICE PRICE (Y) PRICE PRICE (X)

2/2/18 - -
373 359.55 3.605898123 29143.63 29122.27 0.073292174 2.681338607 0.005372 13.0025

3/2/18 - -
359.1 371.85 3.550543024 29217.4 29000.14 0.743597993 3.007433906 0.552938 12.60636

4/2/18 - -
373.25 367.85 1.446751807 29129.85 28883.11 0.847034914 0.307290545 0.717468 2.09309

5/2/18 - -
370 363.4 1.783783784 28912.38 28850.97 0.212400363 1.076118373 0.045114 3.181885

6/2/18 -
365 367.55 0.698630137 28892.21 28717.91 -0.6032768 0.829336691 0.363943 0.488084

9/2/18 - - -
366 355.6 2.841830055 28566.5 28227.39 1.187089773 2.355675307 1.409182 8.074293

10/2/18 354.18 356.95 0.790625441 28122.48 28355.62 0.829018502 0.232627947 0.687268 0.625089

11/2/18 - -
358 356.3 0.474860335 28450.26 28533.97 0.294232812 0.256654385 0.086573 0.225492

12/2/18 - -
358 352.7 1.480446927 28650.25 28805.1 0.54048394 1.055361369 0.292123 2.191723

13/2/18 -
354 355.1 0.310734463 28888.99 29094.93 0.712866736 0.037185718 0.508179 0.096556

18/2/18 356 360.55 1.278089888 29170.77 29135.88 -0.11960603 0.807972305 0.014306 1.633514

18/2/18 - -
361 351.8 2.548476454 29136.07 29320.26 0.632171738 0.236883061 0.399641 6.494732

19/2/18 -
357 356.8 0.056022409 29434.91 29462.27 0.092950853 0.040866425 0.00864 0.003139

20/2/18 - -
357 349.75 2.030812325 29446.21 29231.41 0.729465694 2.365424223 0.53212 4.124199

23/2/18 - -
350 346.65 0.957142857 29318.58 28975.11 1.184767514 0.039220474 1.356683 0.918122

24/2/18 - -
346.5 343.18 0.966810967 29018.55 29004.66 0.040976618 0.356402818 0.001879 0.934723

25/2/18 - -
349.7 347.8 0.543322848 29118.32 29007.99 0.368637542 0.570872471 0.135894 0.2952

26/2/18 - - -
351 349.45 0.441895442 29051.9 28746.65 1.050705806 0.543099706 1.103983 0.195007

27/2/18 355.45 355.45 0 28865.12 29220.12 1.229858043 0 1.512551 0

28/2/18 356.65 357.2 0.184212814 29411.33 29361.5 0.028705 0.023782

- -
 0.189424504 0.459352952

-
12.39461827
- -
SUM 2.978695098 0.302831902 9.762361 57.20549

SCRIPT STATISTICS

BETA 0.190592131

STD Y 1.573597113

STD X 0.682595406

COVAR 0.088803828

COEF COR 0.082675109

Fig 10. Bharti Airtel vs Sensex

1
RETURN Y
0
RETURN X
-1

-2

-3
02-02-2018 to 28-02-2018
-4

Secondary data:
The above table shows the Volatility of ITC Returns. Since the beta of the company is
more, then it is more volatile. The value of the correlation coefficient is always
between -1 and +1. The Coefficient of Correlation of the company is 0.082. It means
that when market return increases, the company’s return also increases. A positive or
direct correlation indicates that the series move together, as one increases, the other
also increases. It is rare that one comes across perfect correlation, that is, a correlation
coefficient of exactly -1.0 or +1.0.
 Table 12. Volatility of Wipro Ltd

WIPRO STOCK STOCK SENSEX SENSEX X*Y X^2 Y^2

RETURN(Y) RETURN(X)
OPEN CLOSE OPEN CLOSE
PRICE PRICE PRICE PRICE

2/2/18 610 625 2.459018393 29143.63 29122.27 -0.073292174 -0.18023 0.005372 0.032482

3/2/18 624.5 621.8 -0.432345877 29217.4 29000.14 -0.743597993 0.321492 0.552938 0.103357

4/2/18 624.4 617.65 -1.081037796 29129.85 28883.11 -0.847034914 0.918677 0.717468 0.838464

5/2/18 619 637.3 2.95638126 28912.38 28850.97 -0.212400363 -0.62794 0.045114 0.394304

6/2/18 638 641.5 0.548589342 28892.21 28717.91 -0.6032768 -0.33095 0.363943 0.109529

9/2/18 641.4 648.3 1.075771749 28566.5 28227.39 -1.187089773 -1.27704 1.409182 1.630825

10/2/18 647 643.25 -0.579598145 28122.48 28355.62 0.829018502 -0.4805 0.687268 0.230877

11/2/18 645 639.85 -0.798449612 28450.26 28533.97 0.294232812 -0.23493 0.086573 0.055192

12/2/18 640.18 646.45 0.984144341 28650.25 28805.1 0.54048394 0.531914 0.292123 0.282933

13/2/18 646.9 660.35 2.0791467 28888.99 29094.93 0.712866736 1.482185 0.508179 2.196782

18/2/18 661.2 661.4 0.030248034 29170.77 29135.88 -0.11960603 -0.00362 0.014306 1.31E-05

18/2/18 663 668.6 0.844645551 29136.07 29320.26 0.632171738 0.533961 0.399641 0.285114

19/2/18 669 659.5 -1.420029895 29434.91 29462.27 0.092950853 -0.13199 0.00864 0.017422

20/2/18 660 650.25 -1.477272727 29446.21 29231.41 -0.729465694 1.07762 0.53212 1.181264

23/2/18 652 649.2 -0.429447853 29318.58 28975.11 -1.184767514 0.500207 1.356683 0.250207

24/2/18 645 652.55 1.170542636 29018.55 29004.66 -0.040976618 -0.04796 0.001879 0.002301

25/2/18 659 663.7 0.713201821 29118.32 29007.99 -0.368637542 -0.26291 0.135894 0.069123

26/2/18 664 656.8 -1.084337349 29051.9 28746.65 -1.050705806 1.13932 1.103983 1.298049

27/2/18 657 654.45 -0.388127854 28865.12 29220.12 1.229858043 -0.47734 1.512551 0.227856

28/2/18 660 659.25 -0.113636364 29411.33 29361.5 -0.189424504 0.019253 0.028705 0.000371

SUM 5.057404353 -2.978695098 2.466188 9.762360994 9.186464

SCRIPT STATISTICS

BETA 0.345477454

STD Y 1.243030359

STD X 0.682595406

COVAR 0.180970552

COEF COR 0.189714854

Fig 11. Wipro vs Sensex

3.5
3
2.5
2
1.5
1 RETURN Y
0.5 RETURN X
0
-0.5
-1
-1.5
02-02-2018 to 28-02-2018
-2

Secondary data:
The above table shows the Volatility of ITC Returns. Since the beta of the company is
more, then it is more volatile. The value of the correlation coefficient is always
between -1 and +1. The Coefficient of Correlation of the company is 0.189. It means
that when market return increases, the company’s return also increases. A positive or
direct correlation indicates that the series move together, as one increases, the other
also increases. It is rare that one comes across perfect correlation, that is, a correlation
coefficient of exactly -1.0 or +1.0.
.

CHAPTER-5
FINDINGS,
CONCLUSIONS
RECOMMENDATIONS
5. FINDINGS AND INTERPRETATION
5.1 Findings:
1. STATE BANK OF INDIA: SBI has a beta of 2.534,coefficient of
correlation 0.70 on the one month returns during 1st feb to 28th feb 2018.A beta
of 2.534 is more than the market return (it is assumed as 1).It is proved that
shares are highly volatile compared to market return.
2.RELIANCE COMMUNICATION LTD:
Reliance Communications Ltd has a beta of 1.832,coefficient of correlation
0.495 on the one month returns during 1st feb to 28th feb 2018.A beta of 1.832 is
more than the market return (it is assumed as 1).It is proved that shares are
highly volatile compared to market return.
3.ITC LTD:
ITC Ltd has a beta of 0.360,coefficient of correlation 0.106 on the one month
returns during 1st feb to 28th feb 2018.A beta of 0.360 is more than the market
return (it is assumed as 1).It is proved that shares are highly volatile compared
to market return.
4. SHAREKHANLTD:
SharekhanLtd has a beta of 0.610,coefficient of correlation 0.347 on the one
month returns during 1st feb to 28th feb 2018.A beta of 0.610 is more than the
market return (it is assumed as 1).It is proved that shares are highly volatile
compared to market return.
5.BHEL:
BHEL has a beta of 1.941,coefficient of correlation -0.281 on the one month
returns during 1st feb to 28th feb 2018.A beta of 1.941 is more than the market
return (it is assumed as 1).It is proved that shares are highly volatile compared
to market return.
6.ICICI BANK:
ICICI has a beta of 1.839,coefficient of correlation 0.718 on the one month
returns during 1st feb to 28th feb 2018.A beta of 1.839 is more than the market
return (it is assumed as 1).It is proved that shares are highly volatile compared
to market return.
7. DR.REDDY’S LABORATORIES LTD:
Dr.Reddy’s Laboratories Ltd has a beta of 0.617,coefficient of correlation 0.318
on the one month returns during 1st feb to 28th feb 2018.A beta of 0.617 is more
than the market return (it is assumed as 1).It is proved that shares are highly
volatile compared to market return.
8. BAJAJ AUTO LTD:
Bajaj Auto Ltd has a beta of 0.409,coefficient of correlation 0.132 on the one
month returns during 1st feb to 28th feb 2018.A beta of 0.409 is more than the
market return (it is assumed as 1).It is proved that shares are highly volatile
compared to market return.
9. BHARTI AIRTEL LTD:
Bharti Airtel Ltd has a beta of 0.190,coefficient of correlation 0.082 on the one
month returns during 1st feb to 28th feb 2018.A beta of 0.190 is more than the
market return (it is assumed as 1).It is proved that shares are highly volatile
compared to market return.
10.WIPRO LTD:
Wipro has a beta of 0.345,coefficient of correlation 0.189 on the one month
returns during 1st feb to 28th feb 2018.A beta of 0.345 is more than the market
return (it is assumed as 1).It is proved that shares are highly volatile compared
to market return.
 5.2 SUGGESTIONS:
 Proper scientific way of investigation should be undertaken about sector and its

players before investment

 Clear targets should be set before investment

 Stock pickup should be always selective and should not depend on rumors of the

market

 Define price range first before buying and selling shares

 Before buying and selling shares latest price movement trends should be analyzed

 Speculation is not advised in the market

 Invest in SBI which has higher returns

5.3 Recommendations:
The present situation in the capital market does not appear to be encouraging.
As the high level of fluctuations in these segment have an influence on the other
segments too. What causes high or less volatility in the Indian context remains
largely unanswered question
5.4 Conclusions:
There are number of factors which have an influence on the price movements.
The volatility is depends on the internal and external factors. Some of them are
controllable and others are non controllable
In the year 1978, the base year, the SENSEX was 100 and now it’s more than
21000. It shows that the volatility is very high. When compared with “nifty” or
NSE. The price volatility is very high in SENSEX.
The study also shows that most of the companies in the SENSEX are less
volatile than SENSEX movement.
 BIBLIOGRAPHY:

Textbooks:
a. Prasanna Chandra, “Investment Analysis and Portfolio Management”,
Tata McGraw hill, New Delhi, 2003
b. Donald E Fisher, Ronald J Jordan, “Security Analysis and Portfolio
Management”. Printice Hall New Delhi, 2004
c. Misra & Puri, “Indian Economy”,Himalaya publications, 2009.
d. Punithavathy Pandian, “Security Analysis and Portfolio
Management”200

World Wide Web:

1) www.bseindia.com
2) www.rbi.org.in
3) www.sebi.in