Unknown Indicator

A naive forecasting model for equity instruments is a special case of the moving average forecasting where the number of periods used for smoothing is one. Therefore, the forecast of price 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.
This model is not at all useful as a medium-long range forecasting tool of price. This model is simplistic and is included partly for completeness and partly because of its simplicity. It is unlikely that you'll want to use this model directly to predict equity instruments. Instead, consider using either the moving average model or the more general weighted moving average model with a higher (i.e., greater than 1) number of periods, and possibly a different set of weights.

Naive Prediction In A Nutshell

When using the naïve prediction, it is good for only a time series. Knowing how to compare and use data is important because there are hundreds upon hundreds of ways to analyze data and you have to be sure you are effectively analyzing the data.

If you find yourself looking at data, using naïve prediction is typically used as the benchmark predication, and takes previous data and does not alter it, allowing you to use other prediction models against it to see how they are doing.

Closer Look at Naive Prediction

Another aspect to look using naïve prediction is there could be seasonality in the market you are examining and this approach may not be the best to use. There are other factors to keep in mind such as drift and a shift in the average.

These are in depth formulas that can be manipulated and changed, but it is important to understand what goes into the equation because with that you can narrow in on the specific data that may be altering the results. There are many different resources to use on the Internet so be sure to fully understand what is happening before using this in your current setup. Join an investing group and see if other people are using this as you may find it is not widely used due to a various of reasons. Also, check out Macroaxis as there are many useful tools that can help expand your current trading setup.

Generate Optimal Portfolios

The classical approach to portfolio optimization is known as Modern Portfolio Theory (MPT). It involves categorizing the investment universe based on risk (standard deviation) and return, and then choosing the mix of investments that achieves the desired risk-versus-return tradeoff. Portfolio optimization can also be thought of as a risk-management strategy as every type of equity has a distinct return and risk characteristics as well as different systemic risks, which describes how they respond to the market at large. Macroaxis enables investors to optimize portfolios that have a mix of equities (such as stocks, funds, or ETFs) and cryptocurrencies (such as Bitcoin, Ethereum or Monero)
Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Global Correlations
Find global opportunities by holding instruments from different markets
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Equity Valuation
Check real value of public entities based on technical and fundamental data
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments