Chapter 2
Stock Volatility Forecasting Using Long Short-Term Memory
Section 2
The Basics of Forecasting
Forecasting the data and information related to the evolution of variables is of crucial importance for the setting of plans for the policies of any activity. For example, to plan the production of a company, it is not enough to know that the demand for products or services is increasing or decreasing, but it is essential to predict the trend of future demand for products, prices, and raw material costs. All of these factors are considered influential in production activity. Here are the topics that we will cover now: - Forecasting - Forecast Horizon - Forecasting Methods - Quantitative Methods - Qualitative Methods - How Do We Forecast?