An Empirical Study on the Stock Price Analysis and Prediction Based on ARMA Model

Abstract

the ARMA model is used to analyze the data of China Merchants Bank(600036) shares at the opening price(2010/10/13-2011/4/8) and to predict the next three days (2011/4/11 -2011/4/13) stock opening price data.In contrast with the actual data,the model prediction error is small,indicating that ARMA model is very suitable for short-term forecasts.