Monday, September 12, 2022

Basic Stock Forecasting in Excel Warren Buffet Would Love

Investing in the stock market means trying to forecast or do some prediction on where the market will go. One way to do predictions is with regression, more specifically basic linear regression or simple linear regression. Applying simple linear regression to an individual stock may not work out, but for an index of stocks, that might work. This video will use the S&P500 index as an example of how we can use regression to forecast the index value in the future. As a bonus we can see what the Compounded Annual Growth Rate (CAGR) of the return is to get an idea of what an "annual" return could be based on almost a decade of holding the investment.

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