Visa Stock Forecast - Simple Exponential Smoothing

3V64 Stock  EUR 305.10  0.35  0.11%   
The Simple Exponential Smoothing forecasted value of Visa Inc on the next trading day is expected to be 305.10 with a mean absolute deviation of 2.07 and the sum of the absolute errors of 124.02. Visa Stock Forecast is based on your current time horizon. We recommend always using this module together with an analysis of Visa's historical fundamentals, such as revenue growth or operating cash flow patterns.
  
Visa simple exponential smoothing forecast is a very popular model used to produce a smoothed price series. Whereas in simple Moving Average models the past observations for Visa Inc are weighted equally, Exponential Smoothing assigns exponentially decreasing weights as Visa Inc prices get older.

Visa Simple Exponential Smoothing Price Forecast For the 23rd of December

Given 90 days horizon, the Simple Exponential Smoothing forecasted value of Visa Inc on the next trading day is expected to be 305.10 with a mean absolute deviation of 2.07, mean absolute percentage error of 11.30, and the sum of the absolute errors of 124.02.
Please note that although there have been many attempts to predict Visa Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Visa's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Visa Stock Forecast Pattern

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Visa Forecasted Value

In the context of forecasting Visa's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Visa's downside and upside margins for the forecasting period are 303.71 and 306.49, respectively. We have considered Visa's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
305.10
303.71
Downside
305.10
Expected Value
306.49
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Simple Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of Visa stock data series using in forecasting. Note that when a statistical model is used to represent Visa stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria118.6977
BiasArithmetic mean of the errors -0.9933
MADMean absolute deviation2.067
MAPEMean absolute percentage error0.0074
SAESum of the absolute errors124.02
This simple exponential smoothing model begins by setting Visa Inc forecast for the second period equal to the observation of the first period. In other words, recent Visa observations are given relatively more weight in forecasting than the older observations.

Predictive Modules for Visa

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Visa Inc. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Hype
Prediction
LowEstimatedHigh
303.71305.10306.49
Details
Intrinsic
Valuation
LowRealHigh
274.59342.44343.83
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Visa. Your research has to be compared to or analyzed against Visa's peers to derive any actionable benefits. When done correctly, Visa's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Visa Inc.

Other Forecasting Options for Visa

For every potential investor in Visa, whether a beginner or expert, Visa's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Visa Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Visa. Basic forecasting techniques help filter out the noise by identifying Visa's price trends.

Visa Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Visa stock to make a market-neutral strategy. Peer analysis of Visa could also be used in its relative valuation, which is a method of valuing Visa by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Visa Inc Technical and Predictive Analytics

The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Visa's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Visa's current price.

Visa Market Strength Events

Market strength indicators help investors to evaluate how Visa stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Visa shares will generate the highest return on investment. By undertsting and applying Visa stock market strength indicators, traders can identify Visa Inc entry and exit signals to maximize returns.

Visa Risk Indicators

The analysis of Visa's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Visa's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting visa stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Currently Active Assets on Macroaxis

Other Information on Investing in Visa Stock

Visa financial ratios help investors to determine whether Visa Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Visa with respect to the benefits of owning Visa security.