How to Use ARIMA Model to Predict the Stock Market? (Time Series Analysis-Python)
What is a Time Series? A time series is a series of data points indexed in time order. It is a sequence of discrete-time data. One example of time series data is stock price historical data. One of the main concepts in time series is stationary. What is stationary data? “Stationary” means the statistical structure of the time series is independent of time. The following chart of US GDP is an example of a time series data. We see that mean and variance of GDP change over time. This is an example of Non-stationary time series data. There are three different ways to finding a data is stationary or not. First by plotting the data as we did in the above chart. We can see an obvious upward trend in our data that suggest Non-stationary data set. Second by measuring summary statistics of our data such as Average and Standard-Deviation of our data in various point of time in our data and check for obvious or significant differences between them. If we found that sig