Mastercard Stock Forecast - Double Exponential Smoothing

MA
 Stock
  

USD 284.34  2.43  0.85%   

Mastercard Stock Forecast is based on your current time horizon. Investors can use this forecasting interface to forecast Mastercard historical stock prices and determine the direction of Mastercard'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 Mastercard historical fundamentals such as revenue growth or operating cash flow patterns.
Additionally, see Historical Fundamental Analysis of Mastercard to cross-verify your projections.
  

Open Interest Agains t 2022-09-30 Mastercard Option Contracts

Although open interest is a measure utilized in the options markets, it could be used to forecast Mastercard'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 Mastercard's options reflect these daily shifts, investors could use the patterns of these changes to develop long and short trading strategies Mastercard 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 Mastercard's open interest, investors have to compare it to Mastercard'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 Mastercard 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 Mastercard. 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 Mastercard 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 Mastercard's time series price data and predict how it will affect future prices. One of these methodologies is forecasting, which interprets Mastercard's price structures and extracts relationships that further increase the generated results' accuracy.
Double exponential smoothing - also known as Holt exponential smoothing is a refinement of the popular simple exponential smoothing model with an additional trending component. Double exponential smoothing model for Mastercard works best with periods where there are trends or seasonality.

Mastercard Double Exponential Smoothing Price Forecast For the 1st of October

Given 90 days horizon, the Double Exponential Smoothing forecasted value of Mastercard on the next trading day is expected to be 282.06 with a mean absolute deviation of 3.59, mean absolute percentage error of 22.44, and the sum of the absolute errors of 211.75.
Please note that although there have been many attempts to predict Mastercard 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 Mastercard's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Mastercard Stock Forecast Pattern

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Mastercard Forecasted Value

In the context of forecasting Mastercard'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. Mastercard's downside and upside margins for the forecasting period are 280.66 and 283.46, respectively. We have considered Mastercard'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 284.34
280.66
Downside
282.06
Expected Value
283.46
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Double Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of Mastercard stock data series using in forecasting. Note that when a statistical model is used to represent Mastercard 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 CriteriaHuge
BiasArithmetic mean of the errors 0.2685
MADMean absolute deviation3.589
MAPEMean absolute percentage error0.0107
SAESum of the absolute errors211.753
When Mastercard prices exhibit either an increasing or decreasing trend over time, simple exponential smoothing forecasts tend to lag behind observations. Double exponential smoothing is designed to address this type of data series by taking into account any Mastercard trend in the prices. So in double exponential smoothing past observations are given exponentially smaller weights as the observations get older. In other words, recent Mastercard observations are given relatively more weight in forecasting than the older observations.

Predictive Modules for Mastercard

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Mastercard. 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 Mastercard'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 Mastercard in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
286.54287.94289.34
Details
Intrinsic
Valuation
LowReal ValueHigh
259.22366.39367.79
Details
Bollinger
Band Projection (param)
LowerMiddle BandUpper
294.93314.91334.89
Details
23 Analysts
Consensus
LowTarget PriceHigh
355.00427.18482.00
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Mastercard. Your research has to be compared to or analyzed against Mastercard's peers to derive any actionable benefits. When done correctly, Mastercard'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 Mastercard.

Other Forecasting Options for Mastercard

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

Mastercard 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 Mastercard stock to make a market-neutral strategy. Peer analysis of Mastercard could also be used in its relative valuation, which is a method of valuing Mastercard by comparing valuation metrics with similar companies.
Paypal HoldingsAmn 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

Mastercard 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 Mastercard'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 Mastercard's current price.

Mastercard Market Strength Events

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

Mastercard Risk Indicators

The analysis of Mastercard'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 Mastercard's investment and either accepting that risk or mitigating it. Along with some funamental techniques of forecasting Mastercard 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.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Mastercard without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Additionally, see Historical Fundamental Analysis of Mastercard to cross-verify your projections. Note that the Mastercard information on this page should be used as a complementary analysis to other Mastercard'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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

Complementary Tools for Mastercard Stock analysis

When running Mastercard price analysis, check to measure Mastercard'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 Mastercard is operating at the current time. Most of Mastercard's value examination focuses on studying past and present price action to predict the probability of Mastercard's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Mastercard's price. Additionally, you may evaluate how the addition of Mastercard to your portfolios can decrease your overall portfolio volatility.
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Is Mastercard'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 Mastercard. If investors know Mastercard 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 Mastercard 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 Mastercard is measured differently than its book value, which is the value of Mastercard that is recorded on the company's balance sheet. Investors also form their own opinion of Mastercard's value that differs from its market value or its book value, called intrinsic value, which is Mastercard'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 Mastercard's market value can be influenced by many factors that don't directly affect Mastercard'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 Mastercard's value and its price as these two are different measures arrived at by different means. Investors typically determine Mastercard value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mastercard'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.