IMPLEMENTATION OF CORRELATION AND REGRESSION TECHNIQUES FOR EFFICIENT ANALYSIS OF INDIAN STOCK MARKET

Cerene Mariam Abraham, M. Sudheep Elayidom, T. Santhanakrishnan

Abstract: Stock markets are the most happening places for most of the financial transactions in a country. Derivatives markets, a part of the stock market has become one of the emerging platforms for investors due to the low risk involved. The returns on such investments depend upon your accuracy of prediction of the future value of assets. A number of studies have been done to understand the effect of certain factors on the future value of share prices. Some of the often checked factors are earnings per share, inflation, book value, economic strength, etc. This study revolves around the influence of the less explored but very important factors such as Open interest, Number of Contracts and Deliverable quantity on the share prices. The method of study involved statistical techniques such as Correlation and Regression to study ninety days data of five large cap stocks.

Keywords: Open Interest, Deliverable quantity, Regression analysis and Correlation

DOI: https://doi.org/10.15623/ijret.2017.0604017