Predictive Analytics And Stock Market

 Predictive Analytics:

It is the practice of extracting information from historical data to make predictions about future events or outcomes. It involves applying statistical models, data mining techniques, machine learning algorithms, and other analytical methods to identify patterns and trends in data that can be used to forecast future behaviour.

Predictive analysis can be applied to the stock market to forecast future price movements, identify investment opportunities, and manage risk

For the Stock Market, Predictive Analytics is all about analysing the Fundamental And Technical properties of company (stocks).

Fundamental properties:

Checking fundamental Properties means evaluate the intrinsic value of a stock by analyzing various fundamental factors related to the company, industry, and economy. It involves examining quantitative and qualitative factors to assess the financial health, performance, and prospects of a company and determine whether the stock is overvalued or undervalued.

Financial Statements: Income statement, balance sheet, and cash flow statement.

Ratios and Metrics: (P/E) ratio,  (P/S) ratio, ROE, debt-to-equity ratio.

Management and Governance: Strategic decision-making.

Qualitative Factors: Brand reputation, intellectual property, regulatory environment.

Technical properties:

It involves studying charts and using various tools and indicators to identify patterns, trends, and potential future price movements.

Price Charts, Support and Resistance, Chart patterns, Volume, Indicators, Timeframes etc.