PSI 20 Index Forecast - Polynomial Regression
| PSI20 Index | 6,515 220.35 3.50% |
Most investors in PSI 20 cannot accurately predict what will happen the next trading day because, historically, index 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 PSI 20's time series price data and predict how it will affect future prices. One of these methodologies is forecasting, which interprets PSI 20's price structures and extracts relationships that further increase the generated results' accuracy.
PSI 20 polinomial regression implements a single variable polynomial regression model using the daily prices as the independent variable. The coefficients of the regression for PSI 20 Stock as well as the accuracy indicators are determined from the period prices. PSI 20 Polynomial Regression Price Forecast For the 24th of April
Given 90 days horizon, the Polynomial Regression forecasted value of PSI 20 Stock on the next trading day is expected to be 6,422 with a mean absolute deviation of 43.24, mean absolute percentage error of 2,998, and the sum of the absolute errors of 2,638.Please note that although there have been many attempts to predict PSI Index 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 PSI 20's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).
PSI 20 Index Forecast Pattern
PSI 20 Forecasted Value
In the context of forecasting PSI 20's Index 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. PSI 20's downside and upside margins for the forecasting period are 6,421 and 6,423, respectively. We have considered PSI 20'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 PSI 20 index data series using in forecasting. Note that when a statistical model is used to represent PSI 20 index, 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 | 126.1161 |
| Bias | Arithmetic mean of the errors | None |
| MAD | Mean absolute deviation | 43.2417 |
| MAPE | Mean absolute percentage error | 0.0069 |
| SAE | Sum of the absolute errors | 2637.7431 |
Predictive Modules for PSI 20
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as PSI 20 Stock. Regardless of method or technology, however, to accurately forecast the index market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the index 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 PSI 20'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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as PSI 20. Your research has to be compared to or analyzed against PSI 20's peers to derive any actionable benefits. When done correctly, PSI 20's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in PSI 20 Stock.
Other Forecasting Options for PSI 20
For every potential investor in PSI, whether a beginner or expert, PSI 20's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. PSI Index price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in PSI. Basic forecasting techniques help filter out the noise by identifying PSI 20's price trends.PSI 20 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 PSI 20 index to make a market-neutral strategy. Peer analysis of PSI 20 could also be used in its relative valuation, which is a method of valuing PSI 20 by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
PSI 20 Stock Technical and Predictive Analytics
The index market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of PSI 20'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 PSI 20's current price.| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
PSI 20 Market Strength Events
Market strength indicators help investors to evaluate how PSI 20 index reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading PSI 20 shares will generate the highest return on investment. By undertsting and applying PSI 20 index market strength indicators, traders can identify PSI 20 Stock entry and exit signals to maximize returns.
| Accumulation Distribution | 0.0323 | |||
| Daily Balance Of Power | 1.045651 | |||
| Rate Of Daily Change | 1.04 | |||
| Day Median Price | 6410.11 | |||
| Day Typical Price | 6445.23 | |||
| Market Facilitation Index | 210.73 | |||
| Price Action Indicator | 215.54 | |||
| Period Momentum Indicator | 220.35 |
PSI 20 Risk Indicators
The analysis of PSI 20'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 PSI 20's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting psi index 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 | 0.606 | |||
| Semi Deviation | 0.647 | |||
| Standard Deviation | 0.7924 | |||
| Variance | 0.6279 | |||
| Downside Variance | 0.501 | |||
| Semi Variance | 0.4186 | |||
| Expected Short fall | (0.62) |
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.
Becoming a Better Investor with Macroaxis
Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as PSI 20 Stock using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.Build Optimal Portfolios
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Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any index could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.