A trend analysis to analyze the market cap and its movement, identifying a relationship between Sales and Price of Stock, Performing Correlation & Regression to prove the same.
5. Objective
• Trend analysis of Market Capitalization for
IT stocks
• To identify a relationship between Sales
and Price of a particular stock with respect
to its movement
• Selection of stocks for long term
investment plan
Trend
Analysis
RegressionCorrelation
6. Research
Methodology
Calculation of
Market Cap
Plotting the data in
a Line Graph
Trend Line Analysis
Selection of stocks
w.r.t to Trend
Analysis
Identifying the
relationship
between Sales &
Price
Performing
Correlation &
Regression
Selection of Stocks
for Long Term
Investment
8. NIIT Tech
Trend Analysis, Scatter Graph & Regression
• Sales & Price are strongly co-related because
correlation coefficient stands at 0.95
• R-square stands at 0.90 which states 90% of the
observation falls near the fitted line.
Market Cap-Rs 5057.43
Price- Rs 831.25
9. Zensar Technologies
Trend Analysis, Scatter Graph & Regression
• Sales & Price are strongly co-related because
correlation coefficient stands at 0.95
• R-square stands at 0.91 which states 91% of
the observation falls near the fitted line.
Market Cap- Rs 4009.3
Price- Rs 900.01
10. Tata Elxsi
Trend Analysis, Scatter Graph & Regression
• Sales & Price strongly co-related as the correlation
coefficient is 0.80
• R- Square is at 0.70 i.e 70% of the observation falls
near the fitted line
Market Cap- Rs 6496.99
Price- Rs 1019.75
11. Hexaware
Trend Analysis , Scatter Graph & Regression
• Sales & Price strongly co-related as the
correlation coefficient is 0.87
• R- Square is at 0.76 i.e 76% of the observation
falls near the fitted line
Market Cap- Rs 10343.61
Price- Rs 352.15
12. Conclusion
Positive trend in
Market Cap
Selection of stocks
Strong Correlation
between Sales &
Price
• The study proves that the Market Cap is strongly related
with Sales
• With Sales growth the price of the stock also increases
• Improvement in Market Cap also indicates liquidity of the
stock and the investor confidence
• NIIT Tech, Zensar Technologies, Tata Elxi and Hexaware were
the few stocks selected through this study