Showing posts with label CL. Show all posts
Showing posts with label CL. Show all posts

Saturday, November 26, 2022

Beta of Cummins Included in the List

 Here's the latest list of beta values. I have included Cummins on this list, and the returns for Cummins and the Vanguard S&P 500 Index are based on November 25, 2022, closing prices. Click on the image to see an enlarged version. 

Exhibit: Beta Values for Cummins Included in the list


Companies in this list:

  • Cisco Systems
  • Colgate-Palmolive
  • Lennox International
  • Sealed Air
  • Boeing
  • Newell Brands
  • Timken
  • Cummins

 

Monday, September 5, 2022

Linear Regression of Monthly Returns of Colgate-Palmolive against Vanguard S&P 500 Index ETF

Here is the graph of monthly returns of Colgate-Palmolive (CL) plotted against Vanguard S&P 500 Index ETF (VOO):

Exhibit 1: Monthly Returns of Colgate-Palmolive and Vanguard S&P 500 Index ETF [June 2019 -  August 2022]

(Source: RStudio, ggplot, Data Provided by IEX Cloud)

Results of the linear regression of monthly returns of Colgate-Palmolive against Vanguard S&P 500 Index ETF:

> VOOandCL <- read_excel("/CL_VOO_LM_September_2022.xlsx", sheet = "Sheet1")
lmCLVOO = lm(CL_Monthly_Return~VOO_Monthly_Return, data = VOOandCL)

> summary(lmCLVOO)

Call:
lm(formula = CL_Monthly_Return ~ VOO_Monthly_Return, data = VOOandCL)

Residuals:
      Min        1Q    Median        3Q       Max 
-0.084505 -0.025451  0.002263  0.028820  0.122836 

Coefficients:
                    Estimate Std. Error t value Pr(>|t|)   
(Intercept)        0.0002236  0.0067940   0.033  0.97392   
VOO_Monthly_Return 0.3471172  0.1226847   2.829  0.00749 **
---
Signif. codes:  0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1

Residual standard error: 0.04161 on 37 degrees of freedom
Multiple R-squared:  0.1779, Adjusted R-squared:  0.1557 
F-statistic: 8.005 on 1 and 37 DF,  p-value: 0.007492

The slope of the regression corresponds to the beta of the stock. In this case, Colgate-Palmolive has a beta of 0.34. 
The adjusted R-squared is 0.15. About 15% of Colgate-Palmolive's return is explained by the returns of the S&P 500 index.  
Colgate-Palmolive can protect a portfolio against market volatility since it has a beta value substantially less than 1.    

 

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