Business First Stock Forecast - Naive Prediction
| BFST Stock | USD 20.81 0.64 2.98% |
The Naive Prediction forecasted value of Business First Bancshares on the next trading day is expected to be 20.64 with a mean absolute deviation of 0.37 and the sum of the absolute errors of 22.71. Business Stock Forecast is based on your current time horizon. Investors can use this forecasting interface to forecast Business First stock prices and determine the direction of Business First Bancshares's future trends based on various well-known forecasting models. We recommend always using this module together with an analysis of Business First's historical fundamentals, such as revenue growth or operating cash flow patterns. Although Business First's naive historical forecasting may sometimes provide an important future outlook for the firm, we recommend always cross-verifying it against solid analysis of Business First's systematic risk associated with finding meaningful patterns of Business First fundamentals over time.
Check out Historical Fundamental Analysis of Business First to cross-verify your projections. Business |
Most investors in Business First 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 Business First's time series price data and predict how it will affect future prices. One of these methodologies is forecasting, which interprets Business First's price structures and extracts relationships that further increase the generated results' accuracy.
A naive forecasting model for Business First is a special case of the moving average forecasting where the number of periods used for smoothing is one. Therefore, the forecast of Business First Bancshares value for a given trading day is simply the observed value for the previous period. Due to the simplistic nature of the naive forecasting model, it can only be used to forecast up to one period. Business First Naive Prediction Price Forecast For the 5th of June
Given 90 days horizon, the Naive Prediction forecasted value of Business First Bancshares on the next trading day is expected to be 20.64 with a mean absolute deviation of 0.37, mean absolute percentage error of 0.22, and the sum of the absolute errors of 22.71.Please note that although there have been many attempts to predict Business 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 Business First's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).
Business First Stock Forecast Pattern
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Business First Forecasted Value
In the context of forecasting Business First'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. Business First's downside and upside margins for the forecasting period are 18.65 and 22.63, respectively. We have considered Business First'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 Naive Prediction forecasting method's relative quality and the estimations of the prediction error of Business First stock data series using in forecasting. Note that when a statistical model is used to represent Business First 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 | 118.431 |
| Bias | Arithmetic mean of the errors | None |
| MAD | Mean absolute deviation | 0.3663 |
| MAPE | Mean absolute percentage error | 0.0173 |
| SAE | Sum of the absolute errors | 22.7076 |
Predictive Modules for Business First
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Business First Bancshares. 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 Business First'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 Business First
For every potential investor in Business, whether a beginner or expert, Business First's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Business Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Business. Basic forecasting techniques help filter out the noise by identifying Business First's price trends.Business First 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 Business First stock to make a market-neutral strategy. Peer analysis of Business First could also be used in its relative valuation, which is a method of valuing Business First by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
Business First Bancshares 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 Business First'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 Business First's current price.| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
Business First Market Strength Events
Market strength indicators help investors to evaluate how Business First stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Business First shares will generate the highest return on investment. By undertsting and applying Business First stock market strength indicators, traders can identify Business First Bancshares entry and exit signals to maximize returns.
| Accumulation Distribution | 1610.96 | |||
| Daily Balance Of Power | (0.73) | |||
| Rate Of Daily Change | 0.97 | |||
| Day Median Price | 21.2 | |||
| Day Typical Price | 21.07 | |||
| Price Action Indicator | (0.71) | |||
| Period Momentum Indicator | (0.64) | |||
| Relative Strength Index | 48.02 |
Business First Risk Indicators
The analysis of Business First'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 Business First's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting business 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 | 1.51 | |||
| Semi Deviation | 2.29 | |||
| Standard Deviation | 2.01 | |||
| Variance | 4.06 | |||
| Downside Variance | 5.47 | |||
| Semi Variance | 5.25 | |||
| Expected Short fall | (1.36) |
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.
Pair Trading with Business First
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Business First position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Business First will appreciate offsetting losses from the drop in the long position's value.Moving against Business Stock
The ability to find closely correlated positions to Business First could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Business First when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Business First - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Business First Bancshares to buy it.
The correlation of Business First is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Business First moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Business First Bancshares moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Business First can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Business Stock Analysis
When running Business First's price analysis, check to measure Business First's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Business First is operating at the current time. Most of Business First's value examination focuses on studying past and present price action to predict the probability of Business First's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Business First's price. Additionally, you may evaluate how the addition of Business First to your portfolios can decrease your overall portfolio volatility.