Comparative Study of Box-Jenkins ARIMA and KNN Algorithm for Stock Price Prediction in Pakistan.

Stock market is considered a vital part of modern economic systems in the world. The fluctuation in the stock prices is of complex nature because multiple causative factors control these movements. This study was carried out to forecast the stock prices by applying two different techniques of kneare...

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Publicado en:Journal of Social Sciences & Humanities (1994-7046) Vol. 30; no. 1; pp. 101 - 123
Autores principales: Ahmad, Bilal, Zakria, Muhammad
Formato: Artículo
Publicado: Allama Iqbal Open University Spring2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Comparative Study of Box-Jenkins ARIMA and KNN Algorithm for Stock Price Prediction in Pakistan.
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        au:
          Ahmad, Bilal
          Zakria, Muhammad
        affil:
          Allama Iqbal Open University, Islamabad
          Associate Professor, Allama Iqbal Open University, Islamabad
      su:
        Pakistan Stock Exchange Ltd.
        K-nearest neighbor classification
        Stock prices
        Stock price forecasting
        Box-Jenkins forecasting
        Standard deviations
        Pakistan
      sug:
        subj:
          Pakistan
          Pakistan Stock Exchange Ltd.
          K-nearest neighbor classification
          Stock prices
          Stock price forecasting
          Box-Jenkins forecasting
          Standard deviations
      keyword:
        ARIMA
        Forecasting
        KNN algorithm
        Pakistan Stock Exchange
      ab: Stock market is considered a vital part of modern economic systems in the world. The fluctuation in the stock prices is of complex nature because multiple causative factors control these movements. This study was carried out to forecast the stock prices by applying two different techniques of knearest neighbors algorithm and Box-Jenkins ARIMA to compare their effectiveness. Three major contributing companies in Pakistan Stock Exchange were selected and the daily stock price data during the period 2014-2018 were used. In the first phase, Box-Jenkins methodology was adopted to build parsimonious ARIMA model for each series separately. The k-nearest neighbors algorithm was also performed and forecasts were calculated. Lastly, Root Mean Square Error, Mean Absolute Error and Mean Absolute Percentage Error were used for comparison purpose of both techniques. It was observed that machine learning technique of k-nearest neighbors algorithm provided more accurate results as compared to ARIMA.
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    language: English
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      custom: Copyright of Journal of Social Sciences & Humanities (1994-7046) is the property of Allama Iqbal Open University and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use.
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