this is my first post in this forum, so if I'm doing any kind of mistake please let me know.
My situation is as follows: I'm currently writing my Thesis and I'm looking into the discrepancies of ETF NAV and their underlying assets (-> NAV premium/discount). I compare the ESG ETF premium/discount to the market premium/discount (used SPX ETF for that).
I've run now for each ESG ETF a regression against the average market premium and now wondering how to interpret the outcome. My dependent variable is ESG ETF premium and my independent variable are market premium (referenced as SPX premium in regression output) and fund flow in millions.
I would read it as the following: Y = ESG premium = 0,11397803 + 0,57905014 * market premium + 0,00239136 * fund flow
The intercept (my alpha) means that people pay more for ESG ETFs than for market(SPX) ETFs because it is positive. But what does the beta say? I've learned that beta in a regression is the slope, aka what happens when increasing 1 unit in market (SPX) premium to dependent variable (ESG premium).
Your help is very much appreciated!