Problem Statement:
An important factor when making any decision is risk. Risk is simply uncertainity in important outcomes that can potentially negatively effect you and others in the world. Therefore, managing and minimizing risk is generally seen to be a good thing, and one popular place where risk and risk management occurs is the stock market. When people have money that they dont need right now and other people want that money, they tend to turn to the stock market. Now, the combination of both risk and investing comes in the form of potentially predicting future values of stocks. From pseudo-science/statistics to guesswork to using every metric knwon to humanity, predicing future stock prices has been a commonly attempted project. My future job wil be dealing with economic statitics in relation to financial isntruments and so I thought it would eb a fun excersize to use a Linear Regression Model to predict stock rpice movements.
Research Question:
What variables exist to best predict the prices at closing for certain stocks? To help answer this question I will be using compiled data from Kaggle about the stock market