Among the technical analysis method of forecasting, ARIMA model is considered a flexible statistical method of examining the behaviour of stocks and capturing the different types of data in one model.
Momentum analysis and medium-term momentum analysis refers to the process of examining the past performance of the stocks for a specified period in order to make sound investment decisions.
They do not shed light on the linkage between return and risk. The CAPM analysis helps in understanding the trade-off for each category of stock, i.e. growth, income and value stock.
Short term momentum analysis represents the change experienced by stock prices over a specified period of time. The examination of recent past performance represents the status of the short term investments.
Comparison of annualized average return over a market return enables investors to understand the return generating capacity and the performance of stocks.
Global markets crashed after the 2008 recession is one of the best examples. In such a scenario, trend analysis of stocks using a comparison of average returns and market returns provides an investor with information to make optimal investment decisions.