Comparison between Forecasted Stock Prices and Original Stock Prices in the Karachi Stock Exchange

Muhammad Khan and Muhammad Salman Syed

MPRA Paper from University Library of Munich, Germany

Abstract: Stock price forecasting is certainly a significant aspect to an investor which enables him to invest or to retain its equity. The aim of study is to determine the efficiency of two different security companies i.e. FDM and Magnus and compare its forecast with the original market prices. By applying the paired sample t – test and correlation analysis we found that there is a significant difference observed in the forecasted prices of both the companies but on the other hand, we found a significant correlation between the forecasted prices by the two companies which lead to the conclusion that these two firms can better forecast the increase or decrease in the market prices but as far as the accuracy is concerned, paired sample t –test showed that the firms have shown lacking while predicting the accurate prices

Keywords: Forecasting; Risk Analysis; Stock Prices; Correlation; Paired Sample t-test (search for similar items in EconPapers)
JEL-codes: G11 G12 G17 (search for similar items in EconPapers)
Date: 2015-01, Revised 2015-07
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Published in Journal of Finance, Accounting and Management 2.6(2015): pp. 51-62

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