Natural Gas Commodity Forecast - Simple Regression

NGUSD Commodity   4.93  0.05  1.02%   
The Simple Regression forecasted value of Natural Gas on the next trading day is expected to be 3.79 with a mean absolute deviation of 0.38 and the sum of the absolute errors of 23.39. Investors can use prediction functions to forecast Natural Gas' commodity prices and determine the direction of Natural Gas's future trends based on various well-known forecasting models. However, exclusively looking at the historical price movement is usually misleading. The RSI of Natural Gas' commodity price is about 61. This indicates that the commodity is rather overbought by investors at the present time. The main point of the Relative Strength Index (RSI) is to track how fast people are buying or selling Natural, making its price go up or down.

Momentum 61

 Buy Extended

 
Oversold
 
Overbought
The successful prediction of Natural Gas' future price could yield a significant profit. Please, note that this module is not intended to be used solely to calculate an intrinsic value of Natural Gas and does not consider all of the tangible or intangible factors available from Natural Gas' fundamental data. We analyze noise-free headlines and recent hype associated with Natural Gas, which may create opportunities for some arbitrage if properly timed.
Using Natural Gas hype-based prediction, you can estimate the value of Natural Gas from the perspective of Natural Gas response to recently generated media hype and the effects of current headlines on its competitors.
The Simple Regression forecasted value of Natural Gas on the next trading day is expected to be 3.79 with a mean absolute deviation of 0.38 and the sum of the absolute errors of 23.39.

Natural Gas after-hype prediction price

    
  USD 4.93  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as commodity price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.
  
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any commodity could be closely tied with the direction of predictive economic indicators such as various price indices.

Natural Gas Additional Predictive Modules

Most predictive techniques to examine Natural price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Natural using various technical indicators. When you analyze Natural charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.
Simple Regression model is a single variable regression model that attempts to put a straight line through Natural Gas 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.

Natural Gas Simple Regression Price Forecast For the 24th of January

Given 90 days horizon, the Simple Regression forecasted value of Natural Gas on the next trading day is expected to be 3.79 with a mean absolute deviation of 0.38, mean absolute percentage error of 0.23, and the sum of the absolute errors of 23.39.
Please note that although there have been many attempts to predict Natural Commodity 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 Natural Gas' next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Natural Gas Commodity Forecast Pattern

Natural Gas Forecasted Value

In the context of forecasting Natural Gas' Commodity 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. Natural Gas' downside and upside margins for the forecasting period are 0.05 and 10.32, respectively. We have considered Natural Gas' 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
4.93
3.79
Expected Value
10.32
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 Natural Gas commodity data series using in forecasting. Note that when a statistical model is used to represent Natural Gas commodity, 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 Criteria118.4774
BiasArithmetic mean of the errors None
MADMean absolute deviation0.3773
MAPEMean absolute percentage error0.0917
SAESum of the absolute errors23.3929
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 Natural Gas 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 Natural Gas

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Natural Gas. Regardless of method or technology, however, to accurately forecast the commodity market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the commodity 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.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Natural Gas' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.

Natural Gas Estimiated After-Hype Price Prediction Volatility

As far as predicting the price of Natural Gas at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in Natural Gas or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Commodity prices, such as prices of Natural Gas, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

Natural Gas Commodity Price Prediction Analysis

Have you ever been surprised when a price of a Commodity such as Natural Gas is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Natural Gas backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Commodity price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with Natural Gas, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.77 
6.53
 0.00  
 0.00  
0 Events / Month
0 Events / Month
Uncertain
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
4.93
4.93
0.00 
0.00  
Notes

Natural Gas Hype Timeline

Natural Gas is now traded for 4.93. This commodity is not elastic to its hype. The commodity elasticity to the hype of similar commodities is 0.0. Natural is projected not to react to the next headline, with the price staying at about the same level, and average media hype impact volatility is insignificant. The immediate return on the next news is projected to be very small, whereas the daily expected return is now at 0.77%. %. The volatility of related hype on Natural Gas is about 0.0%, with the expected price after the next announcement by competition of 4.93. Assuming the 90 days horizon the next projected press release will be uncertain.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any commodity could be closely tied with the direction of predictive economic indicators such as various price indices.

Natural Gas Related Hype Analysis

Having access to credible news sources related to Natural Gas' direct competition is more important than ever and may enhance your ability to predict Natural Gas' future price movements. Getting to know how Natural Gas' peers react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how Natural Gas may potentially react to the hype associated with one of its peers.

Other Forecasting Options for Natural Gas

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

Natural Gas Related Commodities

One prevalent trading approach among algorithmic traders in the commodities sector involves employing market-neutral strategies, wherein each trade is designed to hedge away specific risks. Given that this approach necessitates two distinct transactions, if one position underperforms unexpectedly, the other can potentially offset some of the losses. This method can be applied to commodities such as Natural Gas, pairing it with other commodities or financial instruments to create a balanced, market-neutral setup.
 Risk & Return  Correlation

Natural Gas Market Strength Events

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

Natural Gas Risk Indicators

The analysis of Natural Gas' 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 Natural Gas' investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting natural commodity 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.

Story Coverage note for Natural Gas

The number of cover stories for Natural Gas depends on current market conditions and Natural Gas' risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that Natural Gas is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about Natural Gas' long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

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