Stock Returns Forecast : An Examination By Means of Artificial Neural Networks

The validity of the Efficient Market Hypothesis has been under severe scrutiny since several decades. However, the evidence against it is not conclusive. Artificial Neural Networks provide a model-free means to analize the prediction power of past returns on current returns. This chapter analizes th...

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Autores principales: Caride, Martín Iglesias, Bariviera, Aurelio F., Lanzarini, Laura Cristina
Formato: Articulo Preprint
Lenguaje:Inglés
Publicado: 2017
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/125231
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Sumario:The validity of the Efficient Market Hypothesis has been under severe scrutiny since several decades. However, the evidence against it is not conclusive. Artificial Neural Networks provide a model-free means to analize the prediction power of past returns on current returns. This chapter analizes the predictability in the intraday Brazilian stock market using a backpropagation Artificial Neural Network. We selected 20 stocks from Bovespa index, according to different market capitalization, as a proxy for stock size. We find that predictability is related to capitalization. In particular, larger stocks are less predictable than smaller ones.