Bank of Baroda (X) Axis Bank (Y) XY X2 Y2

8/31/2016 0:00 162.85 595.65 595.65 595.65 595.65

8/30/2016 0:00 164.15 591.1 591.1 591.1 591.1
8/29/2016 0:00 160.3 588.8 588.8 588.8 588.8
8/26/2016 0:00 158.45 586.8 586.8 586.8 586.8
8/25/2016 0:00 161.8 586.4 586.4 586.4 586.4
8/24/2016 0:00 163.15 583.65 583.65 583.65 583.65
8/23/2016 0:00 164.25 582.3 582.3 582.3 582.3
8/22/2016 0:00 160 580.15 580.15 580.15 580.15
8/19/2016 0:00 161.65 588.4 588.4 588.4 588.4
8/18/2016 0:00 154.6 593 593 593 593
8/17/2016 0:00 151.15 589.35 589.35 589.35 589.35
8/16/2016 0:00 149.7 583.25 583.25 583.25 583.25
8/12/2016 0:00 149.35 590.75 590.75 590.75 590.75
8/11/2016 0:00 145.95 568.1 568.1 568.1 568.1
8/10/2016 0:00 160.3 567.05 567.05 567.05 567.05
8/9/2016 0:00 158.35 572.1 572.1 572.1 572.1
8/8/2016 0:00 157.15 569.25 569.25 569.25 569.25
8/5/2016 0:00 157.5 565.45 565.45 565.45 565.45
8/4/2016 0:00 155.5 545.7 545.7 545.7 545.7
8/3/2016 0:00 148.8 548.9 548.9 548.9 548.9
8/2/2016 0:00 151.1 549.65 549.65 549.65 549.65
8/1/2016 0:00 147.55 550.2 550.2 550.2 550.2

X Y XY X2 y2
3443.6 12676 12676 12676 12676
( n*XY) - (X*Y) (n*X2) - (X)2 (n*X2) - (X)2 Correlation
-43498961.6 -11706268.96 -160528864 43349671.946 -1.00
n (X)2 (Y)2
12 11858380.96 160680976
 Months Cipla (X) Sun Pharma (Y) X Y XY
Jan-16 585.7 873 343044.5 762129 511316.1
Feb-16 515 855.05 265225 731110.5 440350.8
Mar-16 512.2 819.45 262348.8 671498.3 419722.3
Apr-16 537 811.3 288369 658207.7 435668.1
May-16 472.4 762.7 223161.8 581711.3 360299.5
Jun-16 501.45 763.6 251452.1 583085 382907.2
Jul-16 528.15 829.75 278942.4 688485.1 438232.5
Aug-16 572.6 774.85 327870.8 600392.5 443679.1
Sep-16 580.25 742.7 336690.1 551603.3 430951.7
Oct-16 577.35 748.25 333333 559878.1 432002.1
Nov-16 566.55 710.3 320978.9 504526.1 402420.5
Dec-16 568.2 629.75 322851.2 396585.1 357824
6516.85 9320.7 3554268 7289212 5055374

NXY-(X)(Y)
Correlation
[[NX-(X)][NY-(Y)]]^

NXY-(X)(Y) -77118.9150000066

NX-(X) 181877.307499997 426.4708

NY-(Y) 595093.529999986 771.4231

[[NX-(X)][NY-(Y)]]^
328989.375127931

r -0.2344115672

This shows that there is negative correlation between Cipla and Sunpharma.
 Stock A Stock B
Probability Returns Probability 2
0.3 100 0.35
0.4 80 0.2
0.3 140 0.45

Average (Pa*Ra) 104 (Pb*Rb)

Variance a Square 624 b Square

Standard deviation a 25 b

Covariance 15.33
-64.32
65.61
Covariance 16.62

Correlation 0.00 Covariance/ab

 Stock B
Returns3
250
320
300

286.5

772.75

28

riance/ab