Telefonica Stock Forecast - Polynomial Regression
| TEF Stock | EUR 4.34 0.04 0.91% |
The Polynomial Regression forecasted value of Telefonica on the next trading day is expected to be 4.40 with a mean absolute deviation of 0.06 and the sum of the absolute errors of 3.96. Telefonica Stock Forecast is based on your current time horizon. Investors can use this forecasting interface to forecast Telefonica stock prices and determine the direction of Telefonica's future trends based on various well-known forecasting models. We recommend always using this module together with an analysis of Telefonica's historical fundamentals, such as revenue growth or operating cash flow patterns.
Telefonica |
Most investors in Telefonica cannot accurately predict what will happen the next trading day because, historically, stock markets tend to be unpredictable and even illogical. Modeling turbulent structures requires applying different statistical methods, techniques, and algorithms to find hidden data structures or patterns within the Telefonica's time series price data and predict how it will affect future prices. One of these methodologies is forecasting, which interprets Telefonica's price structures and extracts relationships that further increase the generated results' accuracy.
Telefonica polinomial regression implements a single variable polynomial regression model using the daily prices as the independent variable. The coefficients of the regression for Telefonica as well as the accuracy indicators are determined from the period prices. Telefonica Polynomial Regression Price Forecast For the 12th of June 2024
Given 90 days horizon, the Polynomial Regression forecasted value of Telefonica on the next trading day is expected to be 4.40 with a mean absolute deviation of 0.06, mean absolute percentage error of 0.01, and the sum of the absolute errors of 3.96.Please note that although there have been many attempts to predict Telefonica Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Telefonica's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).
Telefonica Stock Forecast Pattern
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Telefonica Forecasted Value
In the context of forecasting Telefonica's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Telefonica's downside and upside margins for the forecasting period are 3.42 and 5.38, respectively. We have considered Telefonica's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Model Predictive Factors
The below table displays some essential indicators generated by the model showing the Polynomial Regression forecasting method's relative quality and the estimations of the prediction error of Telefonica stock data series using in forecasting. Note that when a statistical model is used to represent Telefonica stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.| AIC | Akaike Information Criteria | 114.8172 |
| Bias | Arithmetic mean of the errors | None |
| MAD | Mean absolute deviation | 0.0639 |
| MAPE | Mean absolute percentage error | 0.0155 |
| SAE | Sum of the absolute errors | 3.9614 |
Predictive Modules for Telefonica
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Telefonica. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Telefonica's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Other Forecasting Options for Telefonica
For every potential investor in Telefonica, whether a beginner or expert, Telefonica's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Telefonica Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Telefonica. Basic forecasting techniques help filter out the noise by identifying Telefonica's price trends.Telefonica Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Telefonica stock to make a market-neutral strategy. Peer analysis of Telefonica could also be used in its relative valuation, which is a method of valuing Telefonica by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
Telefonica Technical and Predictive Analytics
The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Telefonica's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Telefonica's current price.| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
Telefonica Market Strength Events
Market strength indicators help investors to evaluate how Telefonica stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Telefonica shares will generate the highest return on investment. By undertsting and applying Telefonica stock market strength indicators, traders can identify Telefonica entry and exit signals to maximize returns.
| Accumulation Distribution | 554283.0 | |||
| Daily Balance Of Power | (0.57) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 4.36 | |||
| Day Typical Price | 4.35 | |||
| Price Action Indicator | (0.04) | |||
| Period Momentum Indicator | (0.04) |
Telefonica Risk Indicators
The analysis of Telefonica's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Telefonica's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting telefonica stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Mean Deviation | 0.7515 | |||
| Semi Deviation | 0.6893 | |||
| Standard Deviation | 0.9347 | |||
| Variance | 0.8737 | |||
| Downside Variance | 0.8701 | |||
| Semi Variance | 0.4751 | |||
| Expected Short fall | (0.90) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Other Information on Investing in Telefonica Stock
Telefonica financial ratios help investors to determine whether Telefonica Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Telefonica with respect to the benefits of owning Telefonica security.