24/03/2021

DATA

  • Data will be obtained from Yahoo Finance for the analysis of this project. We collected stock data from January 2015 till date, March 2021 for Johnson n Johnson and Amazon using Quantmod package in R.
  • The data will be cleaned by using the packages like dplyr and tidyverse.
  • The goal of the project is to predict the future stock price as well as the impact of Covid-19 on stock prices based on past and present data for both Johnson & Johnson and Amazon.

Problem Description

  • Our team would be investigating the appreciation and depreciation of stock prices of some major companies that saw polar shifts and fluctuations during the pandemic.

  • We would explore how the lockdown, panic-buying, the new work from home structure, and the introduction of COVID-19 vaccines affected market stock valuations.

  • Some of these companies include pharmaceuticals, retail/eCommerce, hygiene essentials manufacturers and video conferencing software.

  • Our project will focus on Johnson $ Johnson and Amazon companies.

  • Our proposed work aims to investigate and improve supervised learning algorithms for stock price prediction. R programming will be used to carry out the technical objectives.

Analytics Plan

More than one methodology to predict the prices will be considered to gauge the best suited model. The performance of the companies would be predicted and analyzed which one is succeeding more during the pandemic time.

  • ARIMA Model
  • KNN Regression Time Series Forecasting Model
  • Neural Network

Description of Packages to be Used

  • library(quantmod)- Quantitative Financial Modelling and Trading Framework for R
  • library(forecast)- Forecasting Time Series and Time Series Models
  • library(tseries)- Time series analysis and computational finance.
  • library(timeseries) -‘S4’ classes and various tools for financial time series:Basic functions such as scaling and sorting,subsetting, mathematical operations and statistical functions.
  • library(dplyr)- dplyr is a grammar of data manipulation, providing a consistent set of verbs that help you solve the most common data manipulation challenges
  • library(readxl)- The readxl package makes it easy to get data out of Excel and into R
  • library(kableExtra)- To display table in a fancy way
  • library(data.table)- Fast aggregation of large data
  • library(DT)- For displaying data in a better way
  • library(tsfknn)- Performing KNN Regression Forecasting
  • library(tidyverse)- Provides functions for data manipulation and tidy, like dplyr and tidyr

Evaluation Plan

We are using three models for prediction such as ARIMA Model, KNN Regression Time Series Forecasting Model, Neural Network and based on the comparison of accuracy we will decide which company is doing better in terms of Stock price increase due to COVID –19.