THE PREDICTION OF STOCK PRICE WITH REGRESSION ANALYSIS AND ITS APPLICATION TO INVESTMENT

Investment in stocks has a great deal of danger compared to investment in time deposits. Naturally, it becomes important for individual investors to know and understand the short-term fluctuation of the market price. This study examines the possibility of obtaining profit of investment by knowing the fluctuation of the stock price with regression analysis, even when there is a circumstance which makes a fluctuation of the market price downward. We still have opportunities to invest on stocks when the stock price is in this falling phase. There has been an opinion that investors will always gain a margin of profit when the stock price is in the rising phase, yet we only know later that the price was rising or falling at a particular moment.