Implementing Machine Learning for Finance: A Systematic Approach to Predictive Risk and Performance Analysis for Investment Portfolios

© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2021

T. C. NokeriImplementing Machine Learning for Financehttps://doi.org/10.1007/978-1-4842-7110-0_6

6. Future Price Prediction Using Linear Regression

Tshepo Chris Nokeri¹  

(1)

Pretoria, South Africa

 

This chapter introduces the parametric method, also called the linear regression method. We use this method to determine the nature of the relationship between an independent variable (continuous or categorical) and a dependent variable (always continuous). Whereas independent variables are continuous variables or categorical variables, a dependent variable is inevitably a continuous variable. It investigates how a change in an independent variable influences a change ...