Abstract

The paper explores stock forecasting methods using NVIDIA as the research object. It contrasts how well LSTM and ARIMA models forecast NVIDIA's stock return. According to the study, LSTM surpasses ARIMA in terms of prediction accuracy. However, both models capture the overall trend of the stock. The results suggest that LSTM is better suited for forecasting stock movements due to its ability to handle time series data. The non-stationary nature of the stock market adds complexity to predictions. The significance of stock forecasting is that informed investment decisions can be made to maximise financial returns. Stock forecasting aims to predict the future performance of individual stocks, market sectors or the market as a whole based on various factors such as historical data, market trends, company fundamentals and economic indicators. By analysing and forecasting stock movements, investors can identify opportunities to buy low and sell high, optimise their portfolios and potentially outperform the broader market. Successful stock forecasting can help investors make more informed decisions, reduce risk and improve their chances of achieving their financial goals.

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