To leverage the advancements in machine learning and more, we've added a new module to calculate the Linear Regression via machine learning. The new app 'Linear Regression'. The app will use the machine learning i.e.
The user will be able to select any global instrument e.g. Stocks, ETFS, Funds, Index, Commodities, Currency, Crypto
Set the duration of dates
The app will then take daily historical returns for the said symbol
Calculate the daily LAG1 returns i.e. Return of 1-Day before for each day
Run machine learning model to predict returns on above data set
Calculate the linear regression model by apply the fit for
Daily LAG1 return
Daily return
Calculate the linear regression line
Calculate the predicted returns based on the linear model
Provide a scatter plot to visualize the daily LAG1 returns, returns and regression line
The time series chart also provide a way to view the returns vs predicted returns and to see how many times the predicted returns direction was correct i.e. If the predicted returns and daily returns directions are same, it is considered a good forecasted direction.
Also it provides stats like;
# number of observations i.e Number of trading days,
# of positive forecast
% of positive forecasted returns within the model
This is the very first Machine Learning model among the many more models to come at KlickAnalytics.com
To access: From the top bar, Click ML > Linear Regression
