A STUDY ON

SECURITY ANALYSIS

KOTAK SECURITIES

1
 ABSTRACT

Security examination is a technique which computes the estimation of different

resources and furthermore discover the impact of different market variances on the

estimation of tradable budgetary instruments (additionally called securities).Security

Analysis is extensively ordered into three classes:

 Fundamental Analysis

 Technical Analysis

 Quantitative Analysis

Basic Analysis alludes to the assessment of securities with the assistance of certain

central business factors, for example, budget reports, current loan fees just as

contender's items and monetary market. Obligation Securities: Tradable resources

which have plainly characterized terms and conditions are called obligation

securities. Monetary instruments sold and obtained between gatherings with

obviously referenced financing cost, key sum, development date just as rate of

profits are called obligation securities.

Portfolio is the accumulation of money related or genuine resources, for example,

value shares, debentures, securities, treasury bills and property and so on portfolio is

a mix of benefits or it comprises of gathering of securities. These property are the

consequence of individual inclinations, choices of the holders with respect to hazard,

return and a large group of different contemplations.

2
 CHAPTER-1

INTRODUCTION

3
 INTRODUCTION

SECURITY ANALYSIS:

The term venture is an expression of numerous implications. The venture alludes to

net augmentations to the capital supply of the network. Speculation choice is a piece

of our financial life. Everyone takes such choices in various setting and at various

occasions. The financial specialist sends cash in explicit venture channels with the

target of better returns. The financial specialist has different elective speculation

roads. Reserve funds are put resources into resources relying upon their unsafe. A

wise speculator with aptitudes of the board can lessen the hazard and expand returns.

CONCEPT OF SECURITY ANALYSIS:

Security investigation alludes to the examination of exchanging securities. It

investigations the offer value returns and the hazard associated with the venture.
Each speculation includes the hazard and the normal return is identified with hazard.
The security examination will help in understanding the conduct of security costs,
market and basic leadership for speculation. In the event that the investigation
incorporates scrip the examination of a market with different securities it is known
as full scale image of the conduct of the market. The whole procedure of evaluating
return and danger of a security is known as security examination.

This customary speculation investigation when connected to securities underlines

the projection of costs promotion profits are known as security examination. It
includes the potential cost of an offer and future profit stream is figure, at that point
limited back to the present esteem. Such esteem is called as ''natural esteem''. At that
point the inherent esteem is contrasted and the securities advertise cost, If the
present market cost is lower than the characteristic esteem, at that point buy is
suggested. Further, the security examination is worked around the possibility that
financial specialists are worried about two central properties intrinsic in securities,
the arrival that can be normal from holding a security, and hazard that is
accomplished will be not exactly the arrival that was normal.

4
PORTFOLIO MANAGEMENT

Concept of Portfolio:

Portfolio is the gathering of monetary or genuine resources, for example, value

shares, debentures, bonds, treasury bills and property and so on portfolio is a mix of

benefits or it comprises of accumulation of securities. These possessions are the

consequence of individual inclinations, choices of the holders with respect to hazard,

return and a large group of different contemplations.

Portfolio management

A speculator considering interest in securities is looked with the issue of picking.

from among countless. His decision relies on the hazard return attributes of

individual securities. He would endeavor to pick the most attractive securities and

like to allot his assets over his gathering of securities. Again he is looked with the

issue of choosing which securities to hold and the amount to put resources into each.

The financial specialist faces an endless number of conceivable portfolio or

gathering of securities. The hazard and return attributes of portfolios contrast from

those of individual securities joining to shape a portfolio. The financial specialist

attempts to pick the ideal portfolio thinking about the hazard return qualities of

every single imaginable portfolio.

As the monetary and money related condition keeps the changing the hazard return

attributes of individual securities just as portfolio additionally change. A financial

specialist puts his assets in a portfolio hoping to get a decent come back with less

hazard to manage.

5
Portfolio the executives concerns the development and upkeep of a gathering of

venture. It is speculation of assets in various securities in which the complete danger

of the Portfolio is limited while anticipating most extreme come back from it. It

principally includes decreasing danger rather that expanding return. Return is clearly

significant however, and a definitive target of portfolio supervisor is to accomplish a

picked dimension of return by causing the least conceivable hazard

6
 OBJECTIVES

 To study and understand the portfolio management concepts.

 To study and understand the security analysis concepts.

 To measure the risk and return of portfolio of companies. Reliance Indian

Oil Corp ,Cipla ,Jindal Steel

 To select an optimum portfolio.

7
 NEED FOR THE STUDY

This requests the financial specialists to be balanced and logical in his venture
movement.
Accordingly he needs to assess a ton of data about the past presentation and the
anticipated future execution of the organization, business all in all before taking the
venture choice. So the examination will be useful in finding the natural estimation of
the offers and settle on choices in their interests in various Sector. Ideal portfolio can
be chosen utilizing this examination among the diverse portfolio premise in the
Banking Sector. The study will be a manual for different researchers and analysts in
doing comparable examination in other ventures.

8
 SCOPE OF THE STUDY
The extent of the investigation is restricted to five chose banking organizations in
India. Financial specialist will most likely take right choice if there should be an
occurrence of speculation which is now made in the scrip of banking organizations
whether it is astute to hang on or to sell the offers.
• The task will be useful for different analysts and researchers in having a nitty gritty
investigation in regards to the exhibition of various segment.

9
 LIMITATIONS

 Detailed study of the topic was not possible due to the limited size of the
project.
 There was a constraint with regard to time allocated for the research study.
 The availability of information in the form of annual reports & price
fluctuations of the companies was a big constraint to the study.

10
 CHAPTER-2

REVIEW OF LITERATURE

11
 REVIEW OF LITERATURE

The securities accessible to a financial specialist for venture are various and of

different sorts. The offers of more than 7000 organizations are recorded in the stock

trades of the nation. Generally, the securities were characterized into proprietorship

securities, for example, value offers and inclination offers and creditorship security,

for example, debentures and Bonbs.Recently various new securities with creative

highlights are being issued by organizations to raise assets for their activities.

Securities investigation is the underlying period of the portfolio the board procedure.

This progression comprises of looking at the hazard return qualities of individual

securities. A fundamental technique in securities speculation is to purchase under

evaluated securities and sell over estimated securities.

There are two elective ways to deal with security investigation, in particular, crucial

examination and specialized examination. They depend on various premises and

pursue various procedures basic examination, the request of the two methodologies,

focuses on the major components influencing the organization, for example, the EPS

of the organization the profit pay-out proportion, the challenge looked by the

organization, the piece of the overall industry, nature of management,etc

As per this methodology, the offer cost of an organization is controlled by these

principal factors. The principal investigator works out the genuine worth or

characteristic estimation of a security dependent on its essentials: if the present

12
market cost is higher than the inborn esteem, the offer is set to be over evaluated and

the other way around.

Major investigation recognizes in a general sense solid organizations whose share

are qualified to be incorporated into the financial specialist's portfolio.

The elective way to deal with security investigation is Technical examination. The

specialized expert trusts that share value developments are precise and show certain

predictable examples. He there fore investigations past developments in the costs of

offers to recognize patterns and examples. He at that point endeavors to foresee the

future piece developments. Specialized examination is a methodology which focuses

on value developments and disregards the essentials of the offers.

indicated by the school of thought; the money related market is effective in valuing

securities. The effective market speculation holds the market costs quickly and

completely mirror all significant accessible data. It implies that the market costs of

securities will constantly rise to its inborn esteem.

Proficient market theory is an immediate renouncement of both essential

examination and specialized investigation. A financial specialist can't reliably

acquire unusual returns by attempted central investigation or specialized

examination. As indicated by productive market theory it is workable for a financial

specialist to gain ordinary returns by ordinarily picking securities of a given hazard

level.

In writing Beinhocker state that assessment give an amazing and viable formula for

salving issues and making procedures in an anticipated situation. Wellness scenes

shows how transformative hunt makes heartiness and versatility through steady

experimentation, parallel inquiry , and blend of versatile strolls and long bounces .by

13
making and developing advancing arrangement of systems, chiefs can make it more

probable that there organization will avoid the procedure wild and appreciate the

high wellness tops.

In perspective on Korczak receives an alternate methodology in the portfolio

streamlining issue. He recognized issues exchanging rules financial exchange

utilizing hereditary calculations. Specialized investigation accept that future patterns

can be recognized as a pretty much confused capacity of past costs. Utilizing an

exchange rule is a pragmatic method for recognizing patterns, which, in wording

create purchasing, and selling signals. based on past costs, each standard produces a

sign: to sell, to hold, or to purchase. To guarantee straightforwardness in the

registering these choice.

In writing of Vieire, he is available a strategy for finding the ideal portfolio utilizing

hereditary calculation coordinating the parameters characterized by the expert and

the ideal beta of the portfolio. The investigation done by utilizing capacities that

gives the most significant data on the budgetary wellbeing of an organization. In this

work, the parameter utilized for the examination is the accompanying lists: current

apportion, fast proportion and market esteem/patrimony esteem. Paired codification

is utilized to speak to the portfolio. The portrayal not just incorporates the offer held

in the portfolio, yet additionally it is extent. The usage was kept running for in

excess of 4000 ages and the wellness the esteem achieved exceptionally near the

most extreme.

In perspective on M.Sitaram Venugopal, S.Subramanian and U.S.Rao the dynamic

portfolio comprising of both obligation and value that has been chosen for every

month for out played out the Sensex all through the testing time frame. What's more,

it likewise progressively changes from obligation to value amid bull stage and the

14
other way around in bear stage consequently. in this manner the model can

distinguish the arrangement of value and obligation securities blend powerfully

without human mediation and get reliably great outcomes in the two stages. It could

utilized by financial specialists both individual and institutional for basic leadership.

PORTFOLIO MANAGEMENT PROCESS

Portfolio the executives is an intricate action which might be separated into

following advances;

1) Specification of venture goals and requirements;

The run of the mill goals looked for by speculators are present pay, capital

thankfulness, and security of key. The general significance of these targets ought to

be indicated. Further, the limitations emerging from liquidity, tome skyline,

assessment, and uncommon conditions must be recognized.

2) choice of advantage blend:

The most significant choice in portfolio the board is the benefit blend Decision. All

around extensively, this is worried about the extents of 'stocks' (value offers and

units/offers of value/situated shared assets) and 'bonds' (fixed pay venture vechiles

as a rule) in the portfolio. The proper 'stock bond' blend depends chiefly on the

hazard resistance and venture resilience skyline of the speculator.

3) Formulation of portfolio system:

When a specific resource blend is picked, a fitting portfolio methodology must be

pounded out. Two expansive decisions are accessible: a functioning portfolio

technique or an inactive portfolio system. A functioning portfolio system endeavors

to acquire better hazard balanced returns by turning than market timing, or part

revolution, or security choice, or a blend of these. A detached portfolio system, then

15
again includes holding an extensively expanded portfolio and keeping up a pre-

decided dimension of hazard presentation.

4) Selection of securities

For the most part, financial specialists seek after a functioning position concerning

security choice. For stock choice, financial specialists normally pass by basic

examination and/or specialized investigation. The components that are considered in

choosing securities (or fixed salary instruments) are respect development, FICO

score, term to development, charge asylum, and liquidity.

5) Portfolio execution:

This is the period of portfolio the executives which is worried about actualizing the

portfolio plan by purchasing as well as selling indicated securities in given sums.

Despite the fact that frequently overlooked in portfolio the board talks, this is a

significant practices step that has a course on speculation results.

6) Portfolio modification:

The estimation of a portfolio just as its sythesis the general extents of stock and

bond parts may change as stocks and bonds vacillate. Obviously the fluctutations of

stocks is regularly the overwhelming element basic this change. Because of such

changes, intermittent rebalancing of the portfolio is required. This essentially

includes a move from stocks to bonds or the other way around. What's more, it

might call for division turn just as security switches.

16
7) Performance assessment:

The exhibition of a portfolio ought to be assessed occasionally. The key elements of

portfolio execution return are proportionate with its hazard introduction. Such an

audit may give valuable input to improve the nature of the portfolio the board

procedure on a proceeding with premise.

Wellsprings of speculation hazard:

As a speculator you are presented to may assortment of dangers. Among these there

are three noteworthy ones: business hazard, loan fee chance. While a point by point

discourse of these is woven in the whole book, at this crossroads a concise thought

might be given.

1) Business hazard:

As a holder of corporate securities (value offers or debentures), you are presented to

the danger of poor business execution. This might be brought about by an

assortment of components like increased challenge, rise of new advances,

improvement of substitute items, moves in purchaser inclinations. Deficient supply

of basic data sources, changes in government strategies, etc. Regularly, obviously,

the central factor might be maladroit and in part the executives. The poor business

execution certainly influences the enthusiasm of investors, who have a lingering

guarantee on the pay and abundance of the firm. It can likewise influence the

enthusiasm of debenture holders if the capacity of the firm to meet its advantage and

vital intrigue installment commitment is hindered. In such a case, debenture holders

face the possibility of default chance.

2) Interest rate chance:

The adjustments in premium have a heading on the welfare of the financial

specialists. As the financing cost goes up., the market cost of existing fixed salary

17
securities falls, and the other way around. This happens in light of the fact that the

purchaser of a fixed pay security would not get it at its standard estimation of offer

esteem if its fixed loan fee ids lower than the overall rate financing cost on a

comparative security. For instance, a debenture that has an assumed worth of Rs

100anda fixed rate of 12% will sell at markdown if the financing cost

18
 CHAPTER-3

COMPANY PROFILE

19
 COMPANY PROFILE

Kotak Securities Limited, an assistant of Kotak Mahindra Bank, is the stock

broking and allocation arm of the Kotak Mahindra Group. The association was
set up in 1994. Kotak Securities is a corporate individual from both The Bombay
Stock Exchange and The National Stock Exchange of India Limited. Its
assignments consolidate stock broking and transport of various cash related things
- including private and assistant circumstance of commitment and esteem and
regular resources. At the present time, Kotak Securities is one of the greatest
broking houses in India with wide land reach. The association has four crucial
domains of business: (1) Institutional Equities, (2) Retail (values and other fiscal
things), (3) Portfolio Management and (4) Depository Services.

• INSTITUTIONAL BUSINESS

This division on a very basic level spreads helper advertise broking. It considers
the necessities of remote and Indian institutional money related authorities in
Indian qualities (both neighborhood offers and GDRs). The division in like
manner solidifies a broad research cell with sectoral specialists who spread all the
genuine areas of the Indian economy.

• CLIENT MONEY MANAGEMENT

This division gives capable portfolio the board organizations to high add up to
resources individuals and corporates. Its fitness in research and stock broking
gives the association the right perspective from which to outfit its clients with
endeavor cautioning organizations.

• RETAIL DISTRIBUTION OF FINANCIAL PRODUCTS

Kotak Securities has a thorough retail scattering sort out, including 870 working
environments (have and franchisees) transversely more than 309 urban networks
and towns, changing 590,000 customers. This framework is used for the
scattering and position of an extent of cash related things that fuses association

20
fixed stores, shared resources, Initial Public Offerings, assistant commitment and
esteem and little speculation subsidizes plans.

21
 CHAPTER-4

DATA ANALYSIS

AND

INTERPRETATION

22
 DATA ANALYSIS

Scripts Which I Have Selected

S.L.N.O SECTOR COMPANY

1 ENERGY RELIANCE

2 OIL INDIAN OIL CORP

3 PHARMA CIPLA

4 STEEL JINDAL STEEL

23
 CALUCALTION OF STANDARD DEVIATION OF CIPLA
R SHARE R R-R [R-R} SQUARE
DATE
PRICE AVARAGE DEVIATIONS DEVIATIONS

6/1/2021 292.2000 297.1196 -4.9196 24.2025

6/2/2021 289.3000 297.1196 -7.8196 61.1461
6/3/2021 290.7500 297.1196 -6.3696 40.5718
6/5/2021 289.5000 297.1196 -7.6196 58.0583
6/6/2021 289.8500 297.1196 -7.2696 52.8471
6/7/2021 289.8000 297.1196 -7.3196 53.5756
6/8/2021 295.4000 297.1196 -1.7196 2.957
6/9/2021 293.6000 297.1196 -3.5196 12.3876
6/10/2021 291.4500 297.1196 -5.6696 32.1444
6/13/2021 290.1000 297.1196 -7.0196 49.2748
6/14/2021 290.4000 297.1196 -6.7196 45.153
6/15/2021 288.2000 297.1196 -8.9196 79.5593
6/16/2021 285.9500 297.1196 -11.1696 124.76
6/17/2021 284.9500 297.1196 -12.1696 148.0992
6/19/2021 284.7500 297.1196 -12.3696 153.007
6/20/2021 304.8500 297.1196 7.7304 59.7591
6/21/2021 312.4560 297.1196 15.3304 235.0211
6/22/2021 310.7000 297.1196 13.5804 184.4273
6/23/2021 314.3000 297.1196 17.1804 295.1661
6/24/2021 310.7000 297.1196 13.5804 184.4273
6/26/2021 310.9000 297.1196 13.7804 189.8994
6/27/2021 310.0000 297.1196 12.8804 165.9047
6/28/2021 313.6500 297.1196 16.5304 273.2541

TOTAL 6833.7500 2525.6037

Average (R) = 6833.7500/23 =297.1196

24
Variane = 1/23-1(2525.6037)

Variance =114.8002

Standard Deviation = Variance

Standard Deviation = 114.8002

Standard Deviation = 10.7145

25
 CALUCALTION OF STANDARD DEVIATION OF IOC
R SHARE R R-R [R-R]2SQUARE
DATE PRICE AVARAGE DEVIATIONS DEVIATIONS
6/1/2021 463.6500 445.6374 18.0126 251.622
6/2/2021 461.5000 445.6374 15.8626 254.8045
6/3/2021 461.6000 445.6374 15.39626 193.5604
6/5/2021 459.5500 445.6374 13.9126 179.8978
6/6/2021 459.0500 445.6374 13.4126 174.5728
6/7/2021 458.8500 445.6374 13.2126 168.029
6/8/2021 458.0000 445.6374 12.9626 134.8524
6/9/2021 457.2500 445.6374 11.6126 62.6092
6/10/2021 453.5500 445.6374 7.6126 57.9517
6/13/2021 453.2500 445.6374 7.6126 27.9649
6/14/2021 450.9000 445.6374 5.2626 19.9148
6/15/2021 450.1000 445.6374 4.4626 2.0661
6/16/2021 444.2000 445.6374 -1.4374 27.9566
6/17/2021 440.3500 445.6374 -5.2874 70.3485
6/19/2021 437.2500 445.6374 -8.33874 206.9973
6/20/2021 431.2500 445.6374 -14.3874 232.1784
6/21/2021 430.1000 445.6374 -15.2374 232.1784
6/22/2021 429.3500 445.6374 -16.2874 265.2794
6/23/2021 432.0500 445.6374 13.5874 184.6174
6/24/2021 433.1000 445.6374 -12.5374 157.1864
6/26/2021 431.0000 445.6374 -14.6374 214.2535
6/27/2021 429.7500 445.6374 -15.8874 252.4095
6/28/2021 423.4000 445.6374 -22.2374 494.502
TOTAL 10249.6500     3958.0283

26
 Average (R) = 10249.6500/23 =445.6374

Variane = 1/23-1(3958.0283

Variance = 179.8981

Standard Deviation = Variance

Standard Deviation = 179.8981

Standard Deviation = 13.4126

27
 CALUCALTION OF STANDARD DEVIATION OF RELIANCE
R SHARE R R-R [R-R]2SQUARE
DATE PRICE AVARAGE DEVIATIONS DEVIATIONS
         
6/1/2021 541.0000 593.5456 -52.5456 2761.0401
6/2/2021 529.8500 593.5456 -63.6956 4057.1294
6/3/2021 533.1500 593.5456 -60.6956 3647.6285
6/5/2021 555.2000 593.5456 -38.3456 1470.385
6/6/2021 552.3000 593.5456 -41.2456 1701.1995
6/7/2021 547.8500 593.5456 -45.6956 2088.0879
6/8/2021 558.4500 593.5456 -35.0956 1231.7011
6/9/2021 559.0500 593.5456 -34.4956 1189.9464
6/10/2021 566.5500 593.5456 -26.9956 726.6044
6/13/2021 569.6000 593.5456 -23.9456 573.3918
6/14/2021 574.0500 593.5456 -19.4956 380.0784
6/15/2021 574.9500 593.5456 -26.9956 345.7963
6/16/2021 590.2500 593.5456 -3.2956 10.8609
6/17/2021 600.2500 593.5456 6.7044 44.9489
6/19/2021 630.5000 593.5456 36.9544 1365.6276
6/20/2021 646.1500 593.5456 52.6044 2767.2228
6/21/2021 654.5500 593.5456 61.0044 3721.5368
6/22/2021 650.6000 593.5456 57.0544 3255.2045
6/23/2021 654.6500 593.5456 61.1044 3733.4948
6/24/2021 648.6500 593.5456 55.1044 3036.4948
6/26/2021 629.5500 593.5456 36.0044 1296.3168
6/27/2021 641.8500 593.5456 48.3044 2333.315
6/28/2021 642.5500 593.5456 49.0044 2401.4312
         
TOTAL 13651.5500   44139.6957

28
Average (R) = 13651.55/23 = 593.5456

Variane = 1/23-1(44139.6957)

Variance = 2021.3498

Standard Deviation = Variance

Standard Deviation = 2021.3498

29
Standard Deciation = 44.7922

CALUCALTION OF STANDARD DEVIATION OF JINDAL STEEL

R R-R [R-R]2SQUARE
R SHARE PRICE
AVARAGE DEVIATIONS DEVIATIONS
DATE
6/1/2021 905.6000 898.0435 7.5565 57.1006
6/2/2021 898.6500 898.0435 0.6065 0.3678
6/3/2021 900.6000 898.0435 2.5565 6.5357
6/5/2021 903.0500 898.0435 5.0065 25.065
6/6/2021 905.0500 898.0435 7.0065 49.091
6/7/2021 901.9000 898.0435 3.8565 14.8726
6/8/2021 899.5500 898.0435 1.5065 2.2695
6/9/2021 900.0000 898.0435 1.9565 3.8279
6/10/2021 900.0500 898.0435 2.0065 4.026
6/13/2021 900.0000 898.0435 1.9565 3.8279
6/14/2021 886.5500 898.0435 -11.4935 132.1005
6/15/2021 899.3000 898.0435 1.2565 1.5788
6/16/2021 879.5500 898.0435 -18.4935 342.0095
6/17/2021 886.0000 898.0435 -12.0435 145.0459
6/19/2021 895.3000 898.0435 -2.7435 7.5267
6/20/2021 897.8500 898.0435 -0.1935 0.0374
6/21/2021 914.0000 898.0435 -15.9565 254.6099
6/22/2021 920.3000 898.0435 22.2565 495.3518
6/23/2021 922.4000 898.0435 24.7065 593.23914
6/24/2021 922.7500 898.0435 24.3565 610.4111
6/26/2021 897.8500 898.0435 -0.1935 0.0374
6/27/2021 888.6000 898.0435 -9.4435 89.1797
6/28/2021 830.0000 898.0435 -68.0435 4626.9179

TOTAL 20654.9000 7468.0298

30
Average (R) = 20654.9000/23 =898.0435

Variane = 1/23-1(7468.0298)

Variance =339.4559

Standard Deviation = Variance

Standard Deviation = 339.4559

Standard Deviation = 18.4243

31
 CALUCLATED AVERAGE AND STANDARD DEVIATION

Reliance 593.5456 44.7922

     

Indian Oil 445.6374 13.4126

     

Cipla 297.1196 10.7145

     

Jindal Steel 898.0435 18.4243

STANDARD DEVIATION

COMPANY NAME PERCENTAGE

RELIANCE 29%

INDIAN OIL 9%

CIPLA 7%

JINDAL STEEL 12%

32
CORRELATION BETWEEN CIPLA & RELIANCE

  DEVIATION OF CIPLA DEVIATION RELIANCE COMBINED DEVIATION

DATE RA-RA RB-RB (RA-RA)(RB-RB)

6/1/2021 -4.9196 10.5848 -52.0729
6/2/2021 -7.8196 0.7848 -6.1368
6/3/2021 -6.3696 -0.1152 0.7338
6/5/2021 -7.6196 -3.7152 28.3083
6/6/2021 -7.2696 0.7348 -5.3417
6/7/2021 -7.3196 3.1848 -23.3115
6/8/2021 -1.7196 10.8348 -18.6315
6/9/2021 -3.5196 18.6348 -65.5870
6/10/2021 -5.6696 6.7348 -38.1836
6/13/2021 -7.0196 11.4348 -80.2677
6/14/2021 -6.7196 13.5348 -90.9484
6/15/2021 -8.9196 11.5348 -102.8858
6/16/2021 -11.1696 10.1348 -113.2017
6/17/2021 -12.1696 5.1848 -63.0969
6/19/2021 -12.3696 3.4348 -42.4871
6/20/2021 7.7304 -2.8152 -21.7626
6/21/2021 15.3304 -16.0152 -245.5519
6/22/2021 13.5804 -19.0152 -258.2340
6/23/2021 17.1804 -20.4152 -350.7413
6/24/2021 13.5804 -3.9652 -53.849
6/26/2021 13.7804 -21.6152 -284.0857
6/27/2021 12.8804 -17.4652 -224.9588
6/28/2021 16.5304 -1.6152 -26.6999
       
TOTAL     -2138.9937

CO-Variance (COVAB)=1/23 (-2138.9937)

-92.9997

COVAB

Correlation Coefficient

(PAB)=

(Std.A) (Std.B)

-99.9997

-0.7349

(10.7145)(11.81)

33
 CALUCLATED CORRELATION CO-EFFICIENT AND PORTFOLIO RISK

BETWEEN TWO COMPANIES

COMPANY NAME Correlation coefficient Risk (%) Portfolio

     

CIPLA & RELIANCE -0.6442 15.8189

RELIANCE & INDIAN OIL -0.9343 6.6600

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 PORTFOLIO RISK

P = X 2
√ 1 12 + X22 22 + 2(X1) (X2) (12) 12

Where X1 = Proportion of Investment in Security 2.

X2 = Proportion of Investment in Security 1.

1 = Standard Deviation of Security 1.

2 = Standard Deviation of Security 2.

X
12 = Correlation Co-Efficient between Security 1 and 2.

p = Portfolio Risk.

1. CIPLA & RELIANCE

X1 = 0.83 1 = 11.81

X12 = -0.6442

X2 = 0.17 2 = 44.7922

P = X 2
√ 1 12 + X22 22 + 2(X1) (X2) (12) 12

2 2 2 2
(0.83) (11.81) + (0.17) (44.7922) +2(0.83)(0.17) (-0.6442)(11.81)(44.7922)

0.6889 Х 139.4761 + 0.0289 Х 2021.3412 + 96.1679

96.0851 + 154.1516 15.8189

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 PORTFOLIO RISK

P = X 2
√ 1 12 + X22 22 + 2(X1) (X2) (12) 12

Where X1 = Proportion of Investment in Security 2.

X2 = Proportion of Investment in Security 1.

1 = Standard Deviation of Security 1.

2 = Standard Deviation of Security 2.

X
12 = Correlation Co-Efficient between Security 1 and 2.

p = Portfolio Risk.

2. RELIANCE & IOC

X1 = 0.68 1 = 13.4126

X12 = -0.9343

X2 = 0.32 2 = 44.7922

P = X 2
√ 1 12 + X22 22 + 2(X1) (X2) (12) 1
2 2 2 2
(0.68) (13.4126) + (0.32) (44.7922) +2(0.68)(0.32) (-0.9343) (13.4126)(44.7922)

83.1847 + 205.4493 – 244.2815

6.66

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PORTFOLIO WEIGHTS

CIPLA & RELIANC

FORMULA:

2b – Pab a b

Xa =

2a + 2b -2Pab a b

Xb = 1 – Xa

Xa = CIPLA

Xb = RELIANCE

a = 11.81 b = 44.7922 Pab = -0.64422

2
(44.7922) – (-0.6442) (11.81) (44.7922)

Xa =

(11.81)2 + (44.7922)2 – 2(-0.6442) (11.81 ) (44.7922)

2021.3412 + 340.7791

139.4761 + 2021.3411 + 681.

2347.1203

2827.3754

= 0.83

Xb = 1 – Xa

Xb = 1 – 0.83 = 0.17

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RELIANCE & IOC

FORMULA:

2b – Pab a b

Xa =

2a + 2b -2Pab a b

Xb = 1 – Xa

Xa = IOC

Xb = RELIANCE

a = 13.4126 b = 44.7922 Pab = -0.9343

2
(44.7922) – (-0.9343) (13.4126) (44.7922)

Xa =

(13.4126)2 + (44.7922)2 – 2(-0.9343) (13.4126 ) (44.7922)

2021.3412 + 561.3086

179.8978 + 2479.2639 + 1122.6172

2567.6498

3781.7782

= 0.68

Xb = 1 – Xa

Xb = 1 – 0.68 = 0.32

38
 CHAPTER-5

FINDINGS, SUGGESTIONS,

CONCLUSIONS

39
 FINDINGS

1. In this blend, according to figurings and study cipla bears an extent of 0.83

and where as reliance bears an extent of 0.17, which is less looked at

ciplaproportion, the deviation of two organizations are 11.8100 for cipla and

44.7922 for reliance

2. Here risk of cipla is lesser than the reliance for example 11.8100<44.7922.

so financial specialists can put their cash or store in cipla, which has less standard

deviation implies less hazard.

3. where as, the portfolio danger of two organizations are decreased to 15.8189.

4. as per this mix portfolio loads are 0.68 and 0.32 for Indian oil and reliance

individually and standard deviation of Indian oil is 13.4126 which is less contrast

with the standard deviation of reliance for example 44.7922, which implies less

hazard associated with Indian oil contrast with reliance.

5. so, to any financial specialist needs to put his cash or store in this portfolio,

it is proposed that he can put some bit of reserve in indian oil and rest of part in

reliance.

6. the portfolio danger of the organizations reliance and Indian oil 6.6600,

which is not exactly the individual organizations hazard

40
 SUGGESTIONS

 Purchasing stocks you don't comprehend on the off chance that you can't
disclose it to a multi year old, simply don't put resources into it.

 Don't endeavor to be jack-off-all-speculations. Stick to handle you known

best.

 Over enhancing: This is the most oversold, abused, rationale opposing idea
among stockbrokers and enrolled venture counsels.

 Not perceiving contrast among esteem and value: This obliges the inability
to figure the inherent estimation of a stock, which are just the limited future
income of the business venture.

 Failure to get Mr. Market: Just on the grounds that the market has put a cost
on a business does not mean it is justified, despite all the trouble. Just an
individual can decide the estimation of a venture and after that decide
whether the market cost is levelheaded.

 Failure to comprehend the effect of expenses: Also known as the distresses

of intensifying, similarly as aggravating attempts to the financial specialist's
long haul advantage, the weight of duties in light of the fact that pf
unreasonable exchanging neutralizes building riches

 Too much spotlight available whether an individual venture has legitimacy

and esteem has nothing to do with that the general market is doing ...

41
 CONCLUSION
portfolio is gathering of various securities and resources by which we can fulfill the
essential target "boost yield limit chance. further' we need to recall some significant
contributing principles.
• investing standards to be recollected.
• don't hypothesize except if it's all day work
• beware of hairdressers, beauticians, servers of anybody - bringing
endowments of inside data or tips.
• before purchasing a security, its better to discover all that one can about the
organization, its administration and rivals, its income and potential outcomes for
development.
• don't endeavor to purchase at the base and sell at the top. this isn't possible
with the exception of by liars.

• learn how to take your misfortunes and neatly. try not to hope to be correct
constantly. in the event that you have committed an error, cut your misfortunes as
fast as could reasonably be expected

• don't purchase such a large number of various securities. better have just a
couple of ventures that can be viewed.

• make an intermittent reappraisal of every one of your ventures to see in the

case of changing advancements have modified prospects.

• study your duty position to known when you pitch to most noteworthy points
of interest.

• always keep a decent piece of your capital in a money save. never contribute
every one of your assets.

42
BIBLIOGRAPHY
V A avadhani, Security Analysis and Portfolio Management, Himalaya publishing

house,Pp 1-18,

Ibid. 436-450.

Donald E fisher and Ronald j jardan, Security Analysis and Portfolio Management,

6th edition, Pearson education, Pp 2-5.

Ibid. 285.

S.Kevin, Portfolio Management, Prentic, hall India pvt ltd.2003, Pp 1-18.

Prasanna Chandra, Investment Analysis Portfolio Management, Tata Mc Graw-hill

Publishing Company ltd, Pp 218-220.

V k Bhalla, Investment management, 10th edition, S chand and company Ltd, Pp

701-710.

WEB SITES:

http://www.Amfindja.Com/

htpp://www.Utimf.Com/

http://www.BseIndia.Com/

http://www.sebi.govt.in/

http://www.hseindia.com/

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