Jurnal Info Sains : Informatika dan Sains
Vol. 14 No. 01 (2024): Informatika dan Sains , Edition January - March 2024

Utilizing linear regression to forecast the stock price fluctuations of top-rated companies

Andi Primafira Bumandava Eka (STIE Manajemen Bisnis Indonesia)
Asri Ady Bakri (Universitas Muslim Indonesia Makassar)
Leny Yuliyani (Universitas Siliwangi)



Article Info

Publish Date
08 Feb 2024

Abstract

The purpose of this study is to use linear regression to forecast the closing stock price of the top 10 issuers from the LQ45 Index. When it is appropriate to purchase or sell the stock, it is determined by comparing the forecasted close price with the actual stock price. The relationship between independent factors (such past stock prices) and dependent variables (stock prices) is modelled using the linear regression approach. The prediction error rate is then calculated by comparing the expected and actual outcomes using the Root Mean Square Error (RMSE). It is evident from the data that the close stock price's anticipated growth does not consistently rise each month. For this reason, this prediction is crucial in assisting investors in their decision-making. It makes sense to sell the stock if the estimated growth of its closing price is expected to climb; conversely, if the projection is expected to fall, it makes sense to purchase the stock. According to the test findings, the linear regression model is capable of producing precise predictions that help investors decide what to buy on the Indonesian stock market.

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Journal Info

Abbrev

InfoSains

Publisher

Subject

Computer Science & IT

Description

urnal Info Sains : Informatika dan Sains (JIS) discusses science in the field of Informatics and Science, as a forum for expressing results both conceptually and technically related to informatics science. The main topics developed include: Cryptography Steganography Artificial Intelligence ...