ISSN 2394-5125
 

Research Article 


APPLICATION OF MARKOV CHAIN AND RADIAL BASIS FUNCTION NEURAL NETWORKS IN FORECASTING PARSIAN BANK STOCK PRICE INDEX AT TEHRAN STOCK EXCHANGE

YEKTASADAT ERFAN.

Abstract
Due to developments and advances in financial markets worldwide, many researchers have become interested in studying these markets. An
important area of financial markets is price trend modeling, primarily performed through stochastic models such as a Markov chain. Basically, a
Markov chain is employed to determine a market direction and the future share price behavior. Moreover, artificial neural networks are used for
prediction. In this study, a Markov chain was utilized and updated along with a neural networks of a radial basis function to forecast stocks direction
and prices of Parsian Bank on the Tehran Stock Exchange from January 26, 2016 to August 21, 2016 (115 business days) and from July 1, 2019 to
February 22, 2020 (148 business days). Therefore, a Markov chain and a neural networks of a radial basis function forecasted prices of future days
by using MATLAB software. Then the results of the two models were compared. Finally, the simpler and better model was determined for modeling
prices direction of Parsian Bank.

Key words: Markov Chain, Radial Basis Function Neural Networks, Stock prices of Parsian Bank


 
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Pubmed Style

YEKTASADAT ERFAN. APPLICATION OF MARKOV CHAIN AND RADIAL BASIS FUNCTION NEURAL NETWORKS IN FORECASTING PARSIAN BANK STOCK PRICE INDEX AT TEHRAN STOCK EXCHANGE. JCR. 2020; 7(17): 3455-3463. doi:10.31838/jcr.07.17.428


Web Style

YEKTASADAT ERFAN. APPLICATION OF MARKOV CHAIN AND RADIAL BASIS FUNCTION NEURAL NETWORKS IN FORECASTING PARSIAN BANK STOCK PRICE INDEX AT TEHRAN STOCK EXCHANGE. http://www.jcreview.com/?mno=36439 [Access: May 30, 2021]. doi:10.31838/jcr.07.17.428


AMA (American Medical Association) Style

YEKTASADAT ERFAN. APPLICATION OF MARKOV CHAIN AND RADIAL BASIS FUNCTION NEURAL NETWORKS IN FORECASTING PARSIAN BANK STOCK PRICE INDEX AT TEHRAN STOCK EXCHANGE. JCR. 2020; 7(17): 3455-3463. doi:10.31838/jcr.07.17.428



Vancouver/ICMJE Style

YEKTASADAT ERFAN. APPLICATION OF MARKOV CHAIN AND RADIAL BASIS FUNCTION NEURAL NETWORKS IN FORECASTING PARSIAN BANK STOCK PRICE INDEX AT TEHRAN STOCK EXCHANGE. JCR. (2020), [cited May 30, 2021]; 7(17): 3455-3463. doi:10.31838/jcr.07.17.428



Harvard Style

YEKTASADAT ERFAN (2020) APPLICATION OF MARKOV CHAIN AND RADIAL BASIS FUNCTION NEURAL NETWORKS IN FORECASTING PARSIAN BANK STOCK PRICE INDEX AT TEHRAN STOCK EXCHANGE. JCR, 7 (17), 3455-3463. doi:10.31838/jcr.07.17.428



Turabian Style

YEKTASADAT ERFAN. 2020. APPLICATION OF MARKOV CHAIN AND RADIAL BASIS FUNCTION NEURAL NETWORKS IN FORECASTING PARSIAN BANK STOCK PRICE INDEX AT TEHRAN STOCK EXCHANGE. Journal of Critical Reviews, 7 (17), 3455-3463. doi:10.31838/jcr.07.17.428



Chicago Style

YEKTASADAT ERFAN. "APPLICATION OF MARKOV CHAIN AND RADIAL BASIS FUNCTION NEURAL NETWORKS IN FORECASTING PARSIAN BANK STOCK PRICE INDEX AT TEHRAN STOCK EXCHANGE." Journal of Critical Reviews 7 (2020), 3455-3463. doi:10.31838/jcr.07.17.428



MLA (The Modern Language Association) Style

YEKTASADAT ERFAN. "APPLICATION OF MARKOV CHAIN AND RADIAL BASIS FUNCTION NEURAL NETWORKS IN FORECASTING PARSIAN BANK STOCK PRICE INDEX AT TEHRAN STOCK EXCHANGE." Journal of Critical Reviews 7.17 (2020), 3455-3463. Print. doi:10.31838/jcr.07.17.428



APA (American Psychological Association) Style

YEKTASADAT ERFAN (2020) APPLICATION OF MARKOV CHAIN AND RADIAL BASIS FUNCTION NEURAL NETWORKS IN FORECASTING PARSIAN BANK STOCK PRICE INDEX AT TEHRAN STOCK EXCHANGE. Journal of Critical Reviews, 7 (17), 3455-3463. doi:10.31838/jcr.07.17.428