Modelling Stock Market Predictions: Applying Langevin Equation with Macroeconomic and Random Dynamics
Background
Stochastic Langevin equation can be used to model real world scenarios using the predefined parameters. It helps in describing a system which evolves under deterministic as well as fluctuating forces. In the case of stock market, they can be moving under a macroscopic economic growth but undergoes short term random fluctuations. The driving force is the economic growth which again depends on the quantities like corporate earnings, GDP growth, inflation as well as bond yields. We can use these quantities as the driving force along with the random variable we add in the Langevin equation.
Learning Outcome (LO)
- LO #1: Developing a model and obtain the relevant macroscopic as well as the microscopic parameters governing the growth of the stock market.
- LO #2: Solving the Langevin equation to obtain a relevant simulation for the growth of the stock market.
What is on offer?
- 1-on-1 sessions with Ph.D. Scholars
- Supervision and Guidance from Global Faculty
- Assistance in Publishing Research