Application of Matrix Calculus and Measurable Spaces in Predicting Stock Market Price Changes
Amadi, I.U *
Department of Mathematics & Statistics, Captain Elechi Amadi Polytechnics, Port Harcourt, Nigeria.
Nwosu, A.U
Department of Statistics, Federal Polytechnic, Nekede, Owerri, Imo State, Nigeria.
Anthony, C
Department of Mathematics & Statistics, Ignatius Ajuru University of Education, Port Harcourt, Nigeria.
Kanu, F.N.
Department of Mathematics Education, Abia State College of Education Technical, Arochukwu, Nigeria.
Ugochukwu, J.C.
Department of Statistics, Imo State University, Owerri, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
The behavior of a stock exchange market can be made through its relative change of the unstable market variables. This paper presents an innovative application of matrix calculus and measurable spaces to model and predict stock market price changes, with a practical case study on Dangote Cement PLC, in order to note different uses of matrix algebra in analyzing stock market prices. The problem were formulated and proved through illustrative cases such as: to presents the rate of change of the matrix M (t) for different trend functions such as: linear, quadratic, cubic, seasonal variations and exponential trends. Also, inflation parameters were used to study the rate of change of relative amount of each cement according to sales, the total cost of cement to four key marketers to different locations which gave lots of significant changes in terms of decision making. More so, measurable spaces were adopted to show that stock prices are measurable and this gave clear insight to Dangote and other corporate investors about investment plans. To this end, researchers, analysts, and policy planners looking to increase predictive accuracy in volatile markets will find it to be a useful resource due to its methodological rigor and illustrative examples.
Keywords: Stock prices, investors, matrix calculus, Dangote and measures