Predicting Stock Prices Using Markov Chain: The Stock Price Forecast based on Shanghai Securities

Abstract

This study investigates and predicts the stock price of Shanghai Securities. Our analysis lemma the C-K equationn step transition to predict the stock price of Shanghai Securities. In this paper, we have put our model into different stocks in reality to test its feasibility. Finally, we envisaged the probable scope for this approach and listed some shortages of using Markov chain in predicting stock price. A great discovery in this page is that utilizing the stock's Markov property; we concluded that Shanghai Securities is martensitic. Also, we have proved the economic benefit of this numerical model.