International Paper Stock Forecast - Simple Regression

IP Stock  USD 39.37  0.09  0.23%   
The Simple Regression forecasted value of International Paper on the next trading day is expected to be 35.90 with a mean absolute deviation of 2.36 and the sum of the absolute errors of 144.20. International Stock Forecast is based on your current time horizon.
Simple Regression model is a single variable regression model that attempts to put a straight line through International Paper price points. This line is defined by its gradient or slope, and the point at which it intercepts the x-axis. Mathematically, assuming the independent variable is X and the dependent variable is Y, then this line can be represented as: Y = intercept + slope * X.

International Paper Simple Regression Price Forecast For the 26th of December

Given 90 days horizon, the Simple Regression forecasted value of International Paper on the next trading day is expected to be 35.90 with a mean absolute deviation of 2.36, mean absolute percentage error of 8.44, and the sum of the absolute errors of 144.20.
Please note that although there have been many attempts to predict International 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 International Paper's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

International Paper Stock Forecast Pattern

Backtest International PaperInternational Paper Price PredictionBuy or Sell Advice 

International Paper Forecasted Value

In the context of forecasting International Paper'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. International Paper's downside and upside margins for the forecasting period are 33.34 and 38.46, respectively. We have considered International Paper'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
39.37
35.90
Expected Value
38.46
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Simple Regression forecasting method's relative quality and the estimations of the prediction error of International Paper stock data series using in forecasting. Note that when a statistical model is used to represent International Paper 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 Criteria120.2431
BiasArithmetic mean of the errors None
MADMean absolute deviation2.3639
MAPEMean absolute percentage error0.059
SAESum of the absolute errors144.1965
In general, regression methods applied to historical equity returns or prices series is an area of active research. In recent decades, new methods have been developed for robust regression of price series such as International Paper historical returns. These new methods are regression involving correlated responses such as growth curves and different regression methods accommodating various types of missing data.

Predictive Modules for International Paper

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as International Paper. 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.
Hype
Prediction
LowEstimatedHigh
36.7839.3441.90
Details
Intrinsic
Valuation
LowRealHigh
35.4344.0246.58
Details
Bollinger
Band Projection (param)
LowMiddleHigh
32.7440.9349.11
Details

Other Forecasting Options for International Paper

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

International Paper 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 International Paper stock to make a market-neutral strategy. Peer analysis of International Paper could also be used in its relative valuation, which is a method of valuing International Paper by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

International Paper 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 International Paper'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 International Paper's current price.

International Paper Market Strength Events

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

International Paper Risk Indicators

The analysis of International Paper'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 International Paper's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting international 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.

Pair Trading with International Paper

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if International Paper position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in International Paper will appreciate offsetting losses from the drop in the long position's value.

Moving together with International Stock

  0.94SW Smurfit WestRock plc Sell-off TrendPairCorr

Moving against International Stock

  0.72300849 Zhejiang Jinsheng NewPairCorr
  0.69002799 XiAn Global PrintingPairCorr
  0.67002836 Guangdong New GrandPairCorr
  0.66CCL-A CCL IndustriesPairCorr
  0.63002831 ShenZhen YUTO PackagingPairCorr
The ability to find closely correlated positions to International Paper could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace International Paper when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back International Paper - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling International Paper to buy it.
The correlation of International Paper is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as International Paper moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if International Paper moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for International Paper can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Additional Tools for International Stock Analysis

When running International Paper's price analysis, check to measure International Paper's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy International Paper is operating at the current time. Most of International Paper's value examination focuses on studying past and present price action to predict the probability of International Paper's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move International Paper's price. Additionally, you may evaluate how the addition of International Paper to your portfolios can decrease your overall portfolio volatility.