Correlations

NIFTY ABAN CAIRN ESSAR ONGC RELIANCE

NIFTY Pearson Correlation 1 .604** .975** .706** .930** .175**

Sig. (2-tailed) .000 .000 .000 .000 .000

Sum of Squares and Cross-

3.504E8 1.257E8 1.927E7 1.102E7 6.887E7 3.111E7
products

Covariance 8.323E5 2.985E5 4.578E4 2.618E4 1.640E5 73903.152

N 422 422 422 422 421 422

ABAN Pearson Correlation .604** 1 .533** .777** .625** .396**

Sig. (2-tailed) .000 .000 .000 .000 .000

Sum of Squares and Cross-

1.257E8 1.237E8 6.261E6 7.212E6 2.754E7 4.190E7
products

Covariance 2.985E5 2.939E5 1.487E4 1.713E4 6.558E4 99521.374

N 422 422 422 422 421 422

CAIRN Pearson Correlation .975** .533** 1 .661** .887** .140**

Sig. (2-tailed) .000 .000 .000 .000 .004

Sum of Squares and Cross-

1.927E7 6.261E6 1.115E6 5.822E5 3.703E6 1.404E6
products

Covariance 4.578E4 1.487E4 2.649E3 1.383E3 8.818E3 3334.298

N 422 422 422 422 421 422

ESSAR Pearson Correlation .706** .777** .661** 1 .715** .599**

Sig. (2-tailed) .000 .000 .000 .000 .000

Sum of Squares and Cross-

1.102E7 7.212E6 5.822E5 6.959E5 2.365E6 4.750E6
products

Covariance 2.618E4 1.713E4 1.383E3 1.653E3 5.631E3 11283.821

N 422 422 422 422 421 422

ONGC Pearson Correlation .930** .625** .887** .715** 1 .326**

Sig. (2-tailed) .000 .000 .000 .000 .000

Sum of Squares and Cross-

6.887E7 2.754E7 3.703E6 2.365E6 1.571E7 1.227E7
products

Covariance 1.640E5 6.558E4 8.818E3 5.631E3 3.741E4 29209.862

N 421 421 421 421 421 421

RELIANCE Pearson Correlation .175** .396** .140** .599** .326** 1

Sig. (2-tailed) .000 .000 .004 .000 .000

Sum of Squares and Cross- 3.111E7 4.190E7 1.404E6 4.750E6 1.227E7 9.051E7
products
 Covariance 7.390E4 9.952E4 3.334E3 1.128E4 2.921E4 2.150E5

N 422 422 422 422 421 422

**. Correlation is significant at the 0.01 level (2-tailed).

All the five petrochemicals companies have positive correlation with the Nifty Index, out of which only
RELIANCE is one of the company which is less correlated and highly correlated among these five is
CAIRN.
Correlation of these five companies with each other is also shown, where ABAN is highly correlated
with ESSAR, Reliance is correlated with ESSAR and CAIRN is highly correlated with ONGC.
This shows that the hike in future stock price of any of these companies will cause positive effect on
Nifty Index, and hike or dip in the stock price of CAIRN individually will show significant effect on
Nifty Index as compared to all other companies individually.