RSUSSH 2020

IN20-081 Multiple Linear Regression for Technical Outlook in Telecom Stock Price

Presenter: Pichit Boonkrong
Rangsit University, Thailand

Abstract

            In this paper, a multiple linear regression is employed as a technical tool to analyze the relationship among gold price, Dow Jones industrial average, oil price and the trading values in Advanced Info Service Public Company Limited (AIS) during January 2- July 31, 2019 (141 days). Both descriptive and inferential statistics are accordingly presented. In order to implement the multiple linear regression model, suitability, essential assumptions and hypotheses are statistically examined.  At a significance level of 0.05, it is found that only gold price and Dow Jones industrial average have the linear relationship with the trading values in AIS Company with the coefficient of determination of 0.998. Therefore, the guideline for trading on the stock of AIS Company Limited can be obtained from the signals of gold price and Down Jones industrial average.

Keywords: Dow Jones; Model fitting; Multiple regression; Stock market; Technical analysis; Telecommunication

Citation format:

Pichit, B., Nithipa, A., & Seksan, S.. (2020). Multiple Linear Regression for Technical Outlook in Telecom Stock Price. Proceeding in RSU International Research Conference, May 1, 2020. Pathum Thani, Thailand.

QUESTIONS & ANSWERS

nisakorn (Visitor)

Nice Result ^^
I have some question, At first why you interest to uses  "gold price", "Dow Jones Industrial average" and "Oil Price" to be the independent variables in this equations. 

Nipaporn Panyayong (Visitor)

For the data in this research. Is  AIS is Stock from Thailand market ?

And  the Gold price  , Oil price  and Dj   from which market ? The world market? 

That means AIS from Thailand market has relationship to  the Gold price  , Oil price  and Dj from that world market , doesn't it?

นิธิภา อาจฤทธิ์ (Visitor)

Answer to nisakorn

Thank you for your attention. 

 As we have examined with the graph, we found that the gold price, the Dow Jones Index and the oil price are in the same direction as the AIS.

Pichit Boonkrong (Presenter)

Gold price and oil  price were taken from the world market. AIS was taken from SET50 of Thailand. DJ from US is considered as one of the most popular indices in the world. Regarding the data we have under the assumptions of MLR, gold and DJ have the linear realtionship to AIS.  

Pichit Boonkrong (Presenter)

To NISAKORN (VISITOR)

This is just a case study as AIS(response variable) is focused, so the possible factors(explanatory variables) are consider. To make it easy, MLR was employed to see such relationship and taken into account when trading in telecom stock price. Howerever, there are many options of stocks to trade. The results in this paper were obtained without economic crisis.