Prediction of Stock Prices Using Markov Chain Monte Carlo

摘要

Financial sector investment is an activity that attract a lot of public interest. One of them is investing funds in purchase company’s shares. Stocks are proof of ownership of a company or business entity. Stocks are an attractive investment and quite challenging because they can provide large profits for investors if they predict correctly. Basically peoples buy stocks for long-term investment to get profit from dividend, but there are also investors who want to get benefit from buying and selling stock prices in the short-term periods. Predicting of stock prices become an attractive and challenges because it can be easy and hard based on fundamental and technical analysis. Apply Bayesian inference to create prediction model and Markov Chain Monte Carlo (MCMC) to generate predicted data. By mathematically predicting stock prices become more challenges, and spending much time to compute. But with parallel computing on Apache Spark requires less time.