DOIONLINE 
DOIONLINE Publish In |
International Journal of Management and Applied Science (IJMAS)-IJMAS |
 Journal Home Volume Issue |
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Issue |
Volume-5,Issue-7 ( Jul, 2019 ) | |||||||||
Paper Title |
Application of Regression and Four Weeks Moving Average Methods in NSE Secondary Market | |||||||||
Author Name |
Meena Ramasamy, Jayanth Jacob | |||||||||
Affilition |
MBA Student, Department of Management Studies, Anna University, Chennai 600 025, India Professor, Department of Management Studies, Anna University, Chennai 600 025, India | |||||||||
Pages |
50-54 | |||||||||
Abstract |
In the highly volatile Indian Stock Market prediction of the stock price movements is a challenging task for the investors. Investors are often in search of a suitable forecasting indicator to identify the movement in the stock price in order to invest for good returns. In this study, 10 companies are selected from the top five highly volatile sectorial indices based on beta computations and then two mid performing companies from each of these volatile sectors are selected based on alpha computation from the National Stock Exchange. 53 weeks stock price data of equity shares is used for the analysis. Two statistical techniques namely, regression analysis and 4 weeks moving average methods are applied to this data and error terms such as Mean Absolute Deviation (MAD), Mean Squared Error (MSE) and Mean Absolute Percentage Error (MAPE) are computed to find out the accuracy of the forecast. t-test is used to identify significant difference in error term values between regression analysis and 4 weeks moving average methods. Correlation coefficients are computed to identify the degree of relationship between the actual and forecasted values for both regression and 4 weeks moving average methods. The results indicated that the 4 weeks moving average is a better forecasting method for 8 companies and for two companies both forecasting methods are suited as their error term values and correlation coefficients are not significantly different. Keywords - Stock Price, Regression, 4 Weeks Moving Average, MAD, MSE, MAPE. | |||||||||
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