Wednesday 12 January 2022

Finance Dissertation | Stock Volatility Forecasting



Finance Dissertation Forecasting Stock Price Volatility - This dissertation addresses the question of whether there might exist a more accurate method of forecasting volatility that those in common use today. More specifically the project restricts its scope to stock prices since historical data, including pricing, for these assets are transparent, readily available and voluminous. Before moving on to the research hypothesis, however, a final general observation about volatility is, perhaps, in order. Volatility is a useful proxy for risk and it is commonly treated as such in the financial literature and mathematical models. However there is a countervailing viewpoint that volatility is not exactly the same thing as risk. A stock that rises exhibits high volatility, but if that rise is based on business fundamentals then the underlying risk may not have moved. The research hypothesis for this dissertation is that recent advances in machine learning and deep neural nets allow the const

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