Daimler Truck Stock Forecast - Naive Prediction

DTG Stock   37.05  0.08  0.22%   
The Naive Prediction forecasted value of Daimler Truck Holding on the next trading day is expected to be 36.34 with a mean absolute deviation of 0.41 and the sum of the absolute errors of 25.07. Investors can use prediction functions to forecast Daimler Truck's stock prices and determine the direction of Daimler Truck Holding's future trends based on various well-known forecasting models. However, exclusively looking at the historical price movement is usually misleading. We recommend always using this module together with an analysis of Daimler Truck's historical fundamentals, such as revenue growth or operating cash flow patterns. Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
  
A naive forecasting model for Daimler Truck is a special case of the moving average forecasting where the number of periods used for smoothing is one. Therefore, the forecast of Daimler Truck Holding value for a given trading day is simply the observed value for the previous period. Due to the simplistic nature of the naive forecasting model, it can only be used to forecast up to one period.

Daimler Truck Naive Prediction Price Forecast For the 24th of December

Given 90 days horizon, the Naive Prediction forecasted value of Daimler Truck Holding on the next trading day is expected to be 36.34 with a mean absolute deviation of 0.41, mean absolute percentage error of 0.31, and the sum of the absolute errors of 25.07.
Please note that although there have been many attempts to predict Daimler Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Daimler Truck's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Daimler Truck Stock Forecast Pattern

Daimler Truck Forecasted Value

In the context of forecasting Daimler Truck's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Daimler Truck's downside and upside margins for the forecasting period are 34.41 and 38.28, respectively. We have considered Daimler Truck's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
37.05
36.34
Expected Value
38.28
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Naive Prediction forecasting method's relative quality and the estimations of the prediction error of Daimler Truck stock data series using in forecasting. Note that when a statistical model is used to represent Daimler Truck stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria116.9427
BiasArithmetic mean of the errors None
MADMean absolute deviation0.411
MAPEMean absolute percentage error0.0113
SAESum of the absolute errors25.0685
This model is not at all useful as a medium-long range forecasting tool of Daimler Truck Holding. This model is simplistic and is included partly for completeness and partly because of its simplicity. It is unlikely that you'll want to use this model directly to predict Daimler Truck. Instead, consider using either the moving average model or the more general weighted moving average model with a higher (i.e., greater than 1) number of periods, and possibly a different set of weights.

Predictive Modules for Daimler Truck

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Daimler Truck Holding. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Other Forecasting Options for Daimler Truck

For every potential investor in Daimler, whether a beginner or expert, Daimler Truck's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Daimler Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Daimler. Basic forecasting techniques help filter out the noise by identifying Daimler Truck's price trends.

Daimler Truck Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Daimler Truck stock to make a market-neutral strategy. Peer analysis of Daimler Truck could also be used in its relative valuation, which is a method of valuing Daimler Truck by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Daimler Truck Holding Technical and Predictive Analytics

The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Daimler Truck's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Daimler Truck's current price.

Daimler Truck Market Strength Events

Market strength indicators help investors to evaluate how Daimler Truck stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Daimler Truck shares will generate the highest return on investment. By undertsting and applying Daimler Truck stock market strength indicators, traders can identify Daimler Truck Holding entry and exit signals to maximize returns.

Daimler Truck Risk Indicators

The analysis of Daimler Truck's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Daimler Truck's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting daimler stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.