A Prediction Approach for Stock Market Volatility Based on Time Series Data

Abstract

Time series analysis and forecasting is of vital significance, owing to its widespread use in various practical domains. Time series data refers to an ordered sequence or a set of data points that a variable takes at equal time intervals. The stock market is considered to be one of the most highly complex financial systems which consist of various components or stocks, the price of which fluctuates greatly with respect to time. Stock market forecasting involves uncovering the market trends with respect to time. All the stock market investors aim to maximize the returns over their investments and minimize the risks associated. Stock markets being highly sensitive and susceptible to quick changes, the main aim of stock-trend prediction is to develop new innovative approaches to foresee the stocks that result in high profits. This research tries to analyze the time series data of the Indian stock market and build a statistical model that could efficiently predict the future stocks.