Choice overload in stock markets

The stock market is a vital platform that enables free access to exchange and trade. Often while making decisions more choices can lead to better opportunities. This makes it even more crucial for investors to statistically determine which investments would earn the most benefits in the short and long run.

Risk tolerance by stocks categorization using ratio analysis

India’s stock market was created in 1875. It not only liberalized the financial market but also created more opportunities for investors to earn. There are over 5000 companies registered in different stock markets. To classify stocks we analysed different financial indicators like price-to-earnings ratio, price-to-book value ratio, dividend per share, and opening and closing price of shares.

Growth stocks
Income stocks
Value stocks

Stock market analysis is an integral part of decision-making while investing

Analyzing the dynamic behaviour of investors in the Indian stock market

A trend analysis of annual average return and market return of stocks revealed that value stocks provide more stable returns during macroeconomic crises like recessions income stocks are safer and better. However post-crisis, growth stocks are a more optimal choice.

20 out of the selected 300 companies that we assessed issued growth stocks. 45 companies issued value stocks. While 22 companies issued income stocks. Growth stocks are more volatile than value & income stocks, a healthy portfolio should contain a combination of growth, value & income stocks to offset risk and earnings.

Stock price forecasting based on ARIMA

Forecasting growth stocks trend in the stock market with the ARIMA model

Among the technical analysis method of forecasting, ARIMA model is considered a flexible statistical method... More

Forecasting income stocks trend with the ARIMA model

Investors deal with uncertainties in the stock market in order to optimize financial returns. This... More

Predicting value stocks trend using ARIMA

This article identifies the forecast model for value stocks for 303 stocks listed in the... More

Forecasting the movement of growth, income & value stocks using ARIMA

Examining the nature of growth, income, and value stocks over the period 2000 to 2020... More

We developed a prediction model that can forecast stock movements efficiently. This model meets critical conditions of Autoregressive integrated moving average (ARIMA) in STATA software.

The nature of stock prices is uncertain, highly volatile, and even complex. The presence of stationarity (I), series correlation (MA), and partial correlation (AR) are assessed in the dataset. Once points of stability are derived for each stock, the forecasting model for growth, income and value stocks is defined.

Prediction of the growth, income and value stocks from the forecasting models show that although there have been variations in return generation capacity, growth stocks have an average return of more than 0.

Income stocks with constant variations have upward and downward trends in average return. However, with mostly above 0, the income stocks are a secure investment.

Finally, value stocks with mostly below 0 for average returns point toward volatility and risks. Although forecasting does not ensure accurate future values, we can make sound investment decisions.