Abbvie Stock Forecast - Naive Prediction

ABBV
 Stock
  

USD 141.98  3.66  2.65%   

Abbvie Stock Forecast is based on your current time horizon. Investors can use this forecasting interface to forecast Abbvie historical stock prices and determine the direction of Abbvie Inc's future trends based on various well-known forecasting models. However, solely looking at the historical price movement is usually misleading. Macroaxis recommends to always use this module together with analysis of Abbvie historical fundamentals such as revenue growth or operating cash flow patterns.
Please continue to Historical Fundamental Analysis of Abbvie to cross-verify your projections.
  

Open Interest Agains t 2022-10-07 Abbvie Option Contracts

Although open interest is a measure utilized in the options markets, it could be used to forecast Abbvie's spot prices because the number of available contracts in the market changes daily, and new contracts can be created or liquidated at will. Since open interest Abbvie's options reflect these daily shifts, investors could use the patterns of these changes to develop long and short trading strategies Abbvie stock based on available contracts left at the end of a trading day.
Please note, to derive more accurate forecasting about market movement from the current Abbvie's open interest, investors have to compare it to Abbvie's spot prices. As Ford's stock price increases, high open interest indicates that money is entering the market, and the market is strongly bullish. Conversely, if the price of Abbvie is decreasing and there is high open interest, that is a sign that the bearish trend will continue, and investors may react by taking short positions in Abbvie. So, decreasing or low open interest during a bull market indicates that investors are becoming uncertain of the depth of the bullish trend, and a reversal in sentiment will likely follow.
Most investors in Abbvie cannot accurately predict what will happen the next trading day because, historically, stock markets tend to be unpredictable and even illogical. Modeling turbulent structures requires applying different statistical methods, techniques, and algorithms to find hidden data structures or patterns within the Abbvie's time series price data and predict how it will affect future prices. One of these methodologies is forecasting, which interprets Abbvie's price structures and extracts relationships that further increase the generated results' accuracy.
A naive forecasting model for Abbvie is a special case of the moving average forecasting where the number of periods used for smoothing is one. Therefore, the forecast of Abbvie Inc value for a given trading day is simply the observed value for the previous period. Due to the simplistic nature of the naive forecasting model, it can only be used to forecast up to one period.

Abbvie Naive Prediction Price Forecast For the 5th of October

Given 90 days horizon, the Naive Prediction forecasted value of Abbvie Inc on the next trading day is expected to be 137.49 with a mean absolute deviation of 1.92, mean absolute percentage error of 5.57, and the sum of the absolute errors of 117.37.
Please note that although there have been many attempts to predict Abbvie 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 Abbvie's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Abbvie Stock Forecast Pattern

Backtest AbbvieAbbvie Price PredictionBuy or Sell Advice 

Abbvie Forecasted Value

In the context of forecasting Abbvie'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. Abbvie's downside and upside margins for the forecasting period are 135.98 and 139.00, respectively. We have considered Abbvie'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 141.98
135.98
Downside
137.49
Expected Value
139.00
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Naive Prediction forecasting method's relative quality and the estimations of the prediction error of Abbvie stock data series using in forecasting. Note that when a statistical model is used to represent Abbvie 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 Criteria119.827
BiasArithmetic mean of the errors None
MADMean absolute deviation1.9241
MAPEMean absolute percentage error0.0136
SAESum of the absolute errors117.3697
This model is not at all useful as a medium-long range forecasting tool of Abbvie Inc. This model is simplistic and is included partly for completeness and partly because of its simplicity. It is unlikely that you'll want to use this model directly to predict Abbvie. Instead, consider using either the moving average model or the more general weighted moving average model with a higher (i.e., greater than 1) number of periods, and possibly a different set of weights.

Predictive Modules for Abbvie

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Abbvie Inc. Regardless of method or technology, however, to accurately forecast the stock or bond 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.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Abbvie's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Abbvie in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
140.60142.11143.62
Details
Intrinsic
Valuation
LowReal ValueHigh
141.70143.21144.72
Details
13 Analysts
Consensus
LowTarget PriceHigh
118.00143.42172.00
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Abbvie. Your research has to be compared to or analyzed against Abbvie's peers to derive any actionable benefits. When done correctly, Abbvie's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Abbvie Inc.

Other Forecasting Options for Abbvie

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

Abbvie 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 Abbvie stock to make a market-neutral strategy. Peer analysis of Abbvie could also be used in its relative valuation, which is a method of valuing Abbvie by comparing valuation metrics with similar companies.
Amazon IncAmn Healthcare ServicesTwist Bioscience CorpFreedom Holding CorpGx Nasdaq-100 CoveredFranklin Mutual EuropeanNatural Hlth TrdUSA Value FactorBetapro Canadian GoldAramark Holdings CorpLong-Term Govt BondMaiden Holdings NorthSeagate Technology HldgsVistra Energy CorpExxon Mobil Corp
 Risk & Return  Correlation

Abbvie 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 Abbvie'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 Abbvie's current price.

Abbvie Market Strength Events

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

Abbvie Risk Indicators

The analysis of Abbvie's basic risk indicators is one of the essential steps in helping accuretelly forecast its future price. The process involves identifying the amount of risk involved in Abbvie's investment and either accepting that risk or mitigating it. Along with some funamental techniques of forecasting Abbvie stock price, 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 stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Abbvie Implied Volatility

    
  33.92  
Abbvie's implied volatility exposes the market's sentiment of Abbvie Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Abbvie's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Abbvie stock will not fluctuate a lot when Abbvie's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Abbvie in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Abbvie's short interest history, or implied volatility extrapolated from Abbvie options trading.

Pair Trading with Abbvie

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Abbvie position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Abbvie will appreciate offsetting losses from the drop in the long position's value.

Moving together with Abbvie

Moving against Abbvie

-0.6AMZNAmazon Inc TrendingPairCorr
The ability to find closely correlated positions to Abbvie could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Abbvie when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Abbvie - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Abbvie Inc to buy it.
The correlation of Abbvie is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Abbvie moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Abbvie Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Abbvie can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Historical Fundamental Analysis of Abbvie to cross-verify your projections. Note that the Abbvie Inc information on this page should be used as a complementary analysis to other Abbvie's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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When running Abbvie Inc price analysis, check to measure Abbvie's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Abbvie is operating at the current time. Most of Abbvie's value examination focuses on studying past and present price action to predict the probability of Abbvie's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Abbvie's price. Additionally, you may evaluate how the addition of Abbvie to your portfolios can decrease your overall portfolio volatility.
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Is Abbvie's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Abbvie. If investors know Abbvie will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Abbvie listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Abbvie Inc is measured differently than its book value, which is the value of Abbvie that is recorded on the company's balance sheet. Investors also form their own opinion of Abbvie's value that differs from its market value or its book value, called intrinsic value, which is Abbvie's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Abbvie's market value can be influenced by many factors that don't directly affect Abbvie's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Abbvie's value and its price as these two are different measures arrived at by different means. Investors typically determine Abbvie value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abbvie's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.