SP Small-Cap Index Forecast - Simple Exponential Smoothing
| SML Index | 1,377 7.77 0.57% |
SP Small-Cap Simple Exponential Smoothing Price Forecast For the 28th of July
Given 90 days horizon, the Simple Exponential Smoothing forecasted value of SP Small-Cap 600 on the next trading day is expected to be 1,377 with a mean absolute deviation of 12.25, mean absolute percentage error of 238.96, and the sum of the absolute errors of 734.98.Please note that although there have been many attempts to predict SML Index 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 SP Small-Cap's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).
SP Small-Cap Index Forecast Pattern
SP Small-Cap Forecasted Value
In the context of forecasting SP Small-Cap's Index 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. SP Small-Cap's downside and upside margins for the forecasting period are 1,376 and 1,379, respectively. We have considered SP Small-Cap'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.
Model Predictive Factors
The below table displays some essential indicators generated by the model showing the Simple Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of SP Small-Cap index data series using in forecasting. Note that when a statistical model is used to represent SP Small-Cap index, 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.| AIC | Akaike Information Criteria | 121.7489 |
| Bias | Arithmetic mean of the errors | -2.5837 |
| MAD | Mean absolute deviation | 12.2497 |
| MAPE | Mean absolute percentage error | 0.0093 |
| SAE | Sum of the absolute errors | 734.98 |
Predictive Modules for SP Small-Cap
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as SP Small-Cap 600. Regardless of method or technology, however, to accurately forecast the index market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the index 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 SP Small-Cap
For every potential investor in SML, whether a beginner or expert, SP Small-Cap's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. SML Index price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in SML. Basic forecasting techniques help filter out the noise by identifying SP Small-Cap's price trends.SP Small-Cap 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 SP Small-Cap index to make a market-neutral strategy. Peer analysis of SP Small-Cap could also be used in its relative valuation, which is a method of valuing SP Small-Cap by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
SP Small-Cap 600 Technical and Predictive Analytics
The index market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of SP Small-Cap'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 SP Small-Cap's current price.| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
SP Small-Cap Market Strength Events
Market strength indicators help investors to evaluate how SP Small-Cap index reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading SP Small-Cap shares will generate the highest return on investment. By undertsting and applying SP Small-Cap index market strength indicators, traders can identify SP Small-Cap 600 entry and exit signals to maximize returns.
SP Small-Cap Risk Indicators
The analysis of SP Small-Cap'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 SP Small-Cap's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting sml index 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.
| Mean Deviation | 0.9014 | |||
| Semi Deviation | 0.8725 | |||
| Standard Deviation | 1.15 | |||
| Variance | 1.33 | |||
| Downside Variance | 1.16 | |||
| Semi Variance | 0.7612 | |||
| Expected Short fall | (1.04) |
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.