Approach Based on Linear Regression for Stock Exchange Prediction – Case Study of Petr4 Petrobrás, Brazil

Abstract

The stock exchange is an important apparatus for economic growth as it is an opportunity for investors to acquire equity and, at the same time, provide resources for organizations expansions. On the other hand, a major concern regarding entering this market is related with the dynamic in which deals are made since the pricing of shares happens in a smart and oscillatory way. Due to this context, several researchers are studying techniques in order to predict the stock exchange, maximize profits and reduce risks. Thus, this study proposes a linear regression model for stock exchange prediction which, combined with financial indicators, provides support decision-making by investors.